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
It's a damn shame we and our families don't recieve healthcare thru our government, hell the employer pays medical, the worker pays medical, workers and employers are taxed for medical where in the hell is all the freakin money going..billons of dollars paid into the medical system by workers and employers and you're still stuck with co-pays and pharmecutical bills, while all the criminals in our medical system are getting rich and treating our own people like ****, our medical system sucks and so does all the decision makers in the process makes me ashamed of our AMERICAN system what a bunch of BASTARDS.
How dare they suggest that wait staff get health care!. Who are their swerving staff to think that their kids should be able to go to the doctor. If they get hurt or sick just fire them and hire in the next person.
Congratulations to Wendy's. Wendy's must have read the Sinclair's book The Jungle and found the light of truth.
Forcing employers to reduce the number of hours worked per employee is the Democrat's way of reducing unemployment to lower than zero. If an employer has 100 employees, who each work 40 hours per week, and this new law forces the employer to reduce the employees' weekly hours worked to 27 hours, theoretically, the employer will cut 13 hours per employee, or 1,300 hours, from his weekly payroll. To get the same amount of work done, the employer will, theoretically, have to hire 1,300 hours divided by 27 hours per man hired, which means the employer will have to hire more than 48 new employees; this means that every employer, who follows this scenario will have to increase the number of men working for him by 48%, which will result in massive labor shortages in the United States, a huge demand for employees, everywhere, and much more than full employment. Employees will find they can get a 27-hour work week anywhere in the USA, which will result in a huge increase in the demand for labor in the USA, massive wage increases for all workers, and corresponding wage and price inflation, which will increase the amount of taxes paid to governments.
Democrats benefit by helping their labor union sponsors strike for higher wages, by making the number of workers scarce. They also get more taxes to bribe more Americans to vote for Democrats to public offices with high-paying pretend-work jobs in what they call social programs, and more money to hire government workers, who mainly vote for Democrats, which increases the Democrat's control over government. Democrats want to bring more Latinos into the USA, because 75% of Latinos vote for Democrats, not because Democrats care about anything but increasing their political power. Democrats pay labor union members and other Democrat supporters with more money for less work, than they take back all the money they pay, and much more, by charging every American higher taxes.
A few months after the insurance law called Obamacare goes into effect, the labor market and unemployment will shrink to zero, and the labor unions and Democrats will take credit for eliminating unemployment and the recession, however, they will try to blame the massive price inflation Americans will have to pay on someone else, probably some other political party, or on the banks, as they did when the Democrats passed and enforced the law called The Urban Renewal Act of 1977, which caused the massive increases in prices in the housing market that caused the recession they will now pretend to fix. Look it up on the Internet, under Obama and housing bubble. Send copies of this to all your friends, who are not Democrats, because Democrats know what they did, already.
Goodness me that would cut your profits to 52 million a year! Whatever would you do?
It is costly to have many employees. If you had a regular crew, made them happy and they showed up for their shifts, you'd SAVE money. You cheap ****'s want to put kids out there for little pay and have a bunch of them. I ran a fast food so I know what I am talking about! If you cut your staff to those you need and employee full time, YOU WOULD SAVE MONEY. And come tax time, you'd save money on you bookkeeper, your paperwork etc. Who do you think you are bsing? Obviously this is a poorly run fast food place. Because of this, I have boycotted ALL Windy's! I don't like being lied to and I don't like all this crap you people make up to discredit Obamacare. I have stopped going to all these places, Red Lobster, Garden, Windy's, Applebys and the list goes on. Maybe you can lie to the common person that has never worked in fast foods, but you can't lie to the many of us that have run these places.
Learn how to run a business! And let me tell you, the first and most important place to start is to keep your employees happy and content. If you don't, they show it to customers that won't return! This means good treatment, good pay, kind benefit and showing you care! And no, I don't mean smile when they don't show up for a shift or don't scold them if they screwed up. But scold with a kind purpose. They are doing YOU a favor, you aren't doing crap for them unless you show it to them!
Welcome to the vision of his father. Welcome to retribution. Welcome to the third world, the new Kenya. Remember what he said to his constituents days before the election, VOTE FOR REVENGE!
Good for all of the business owners that are working to get around this idiotic program. Most of your employees voted for Obama, hoping to get a bigger piece of the pie at other's expense. Now they get to learn a lesson about the Law of Unintended Consequences.
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] The headlines generally favored Tuesday being another good day for the stock market. Instead, it was just a mixed day with modest point changes on either side of the unchanged mark for the major indices.
For the most part, the stock market was a sideshow. The main trading events were seen in the commodity and Treasury markets, both of which saw some decent-sized losses within their respective complex.
Dollar strength was at the heart of the weakness in ... More
More Market News
The S&P 500 manages to keep a deathgrip on 2,000, but key areas of the market are already buckling under pressure.
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'