Wendy’s franchise cuts hours to avoid Obamacare
The action is the latest in a series of challenges against next year's implementation of the Affordable Care Act.
The small-business backlash against Obamacare continues. A Wendy’s fast-food franchise in Nebraska is cutting the hours of non-management employees so its owners won't be required to pay health benefits.
The local franchise vice president in Omaha tells WOWT-TV the cuts are coming in several weeks’ time because he cannot afford to pay health insurance for all his employees.
Starting next year the U.S. Affordable Care Act, also known as Obamacare, will require employers with 50 or more full-time employees to offer full-time workers "minimum essential" healthcare coverage. The Act defines a full-time employee as someone who works at least 30 hours a week.
As a result, about 100 Wendy’s workers in Omaha have been told their hours are being cut.
"It has a huge effect on me and pretty much everybody that I work with," T.J. Growbeck, who currently works 36 to 37 hours a week at the restaurant, told WOWT. "I'm hoping that I can get some sort of promotion because then I would get my hours, but everybody is shooting for that because of the hours being cut."
Wendy's spokesman Denny Lynch told the Huffington Post the decision was being made at the franchise level.
"Our franchisees are independent businesspeople, and they make the decisions regarding their restaurant teams," he said. "As small-business employers, our franchisees are facing rising food and operating costs and many new government regulations."
While Wendy’s says the hours-cutting action by its Omaha franchise is not "a company decision," several major restaurant chains have been very vocal in their criticism of Obamacare.
A case in point: Papa John's (PZZA) CEO John Schnatter said the Affordable Care Act would cost his company up to $8 million a year, which would force him to increase product costs and cut workers’ hours.
Other restaurant franchises, meanwhile, are also looking at options ahead of Obamacare. John Rigos, owner of a Five Guys franchise in New York City, told CBS News the new regulations will affect hiring policies at his restaurants.
"It'll probably have to reduce the staff to some degree," he said, "and again, focus on building [a] smaller stronger team rather than being as aggressive in opening up new stores and creating new jobs."
Rigos said while he "absolutely" supports Obamacare, he still finds it challenging.
"There's 25,000 restaurants within the New York City market we're competing against," he notes, "so it's not like we have surplus profits that we could just earmark a portion of them to go toward these types of initiatives."
More on Money Now
- Is a global sushi craze emptying the oceans?
- Can Eddie Lampert save Sears?
- Allstate tries to fix a public relations blunder
You don't seem to realize this has been going on a while. 40 hours were cut
so employers could dodge benefits. 30 hours, no benefits, minimum wage
for temp workers is how it goes now.
Get this, el presidente has in place penalties if you do not get your own medical
coverage. The system is badly broken; the motive is profit, nothing to do with your
As I read these comments I see a pattern, A whole bunch blind mice who believe that health is not nessecary for the workers. And that management and the honarables that voted for this are that only ones entitled to health insurance?
This change to the system of health care may not be the fix but we have not even tried to see if it might work. It's a sorry that we have become so self sevring.
Boy do I hate people who say, "I told you so". I even hate those people more that say, "you haven't seen anything yet". The worst are those that say, "you get what you voted for so don't complain". NOT!
So you are telling me that there is no cause and effect to any action.
I'll bet you that the government will never let you know how many people had their hours slashed or loss their benefits.
My employee lectured me about ObamaCare for 6 months before the election. I dont have 50 employees, so I do not have to provide insurance under the ACA.
I did show him what his estimated penalty would be every year that he did not purchase insurance. He had no idea what I was talking about.
He said that he wasnt going to pay it and that he thought healthcare was "free." I explained that the first proposal has criminal penalties associated with you not buying insurance.
Also, they wanted to draft directly out of your bank account, dont know if that is still the case.
As long as someone else has to pay, people are all for it.
Deficit spending and forced healthcare is not magic. Someone has to pay for it.
I anticipate alot of flak for these comments, but it is basic VERY BASIC math.
Most people that would debate on this issue would respond with something like "what about Bush?" "What about Cheney?" What about your boy, Rush?
Those guys were not looking out for me, either.
This is not a clash of political ideology, it is lunacy. This is about MAKING US BUY INSURANCE, A PRODUCT LIKE STARBUCKS COFFEE.
If you want analogies that are politically neutral:
Cheney is to Halliburton what Warren Buffett is to the Insurance Industry.
They all do it.
TRY AND PUT ME IN JAIL FOR NOT HAVING HEALTH INSURANCE OBAMA YOU ****TARD.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -9.30. The stock market is on track for a lower start as futures on the S&P 500 trade four points below fair value.
Index futures have retreated from their overnight highs following another round of disappointing data from China. This time, it was the Foreign Direct Investment report, which revealed a 1.8% decline (previous -0.4%), leading to concerns about a potential hard landing.
The ... More
More Market News
Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'