Restaurant owner tries to work with Obamacare
It's going to be a tough road for one Jimmy John's franchise owner, but he's trying to plan for it and figure out a way.
One Denny's franchisee threatened a 5% surcharge on meals, and suggested that customers could tip less. An Applebee's franchisee threatened to cut worker hours. Papa John's (PZZA) founder, John Schnatter, threatened to raise the cost of a pizza by as much as 14 cents and said he would "find tactics to shallow out any Obamacare costs."
So perhaps it is newsworthy, then, that one restaurant owner is simply going to try to make Obamacare work.
The Nebraska owner of 18 Jimmy John's franchises says he's going to figure out how to give his employees health care. "I'm trying to save for it and plan for it so I can comply with the government, provide health care and still pay for it," Dean Hodges said in an email to the Huffington Post.
Already, 38 of Hodges' 550 employees receive health care benefits because they are full-time employees. You can only get those benefits after working full-time for six months, and so another eight or nine workers will become eligible next year, the Post reports.
But the Affordable Care Act considers an employee working 30 or more hours a week a "full-time equivalent." Restaurants will have to insure them or pay them more so they can buy their own health insurance.
For Hodges, that means 150 more employees will be considered full time. And that's a huge new expense for his business. He told the Huffington Post that those 150 employees would add some $500,000 in premiums, making 10 of his 18 stores unprofitable.
This is a very tight spot to be in. But kudos for Hodges for talking about it rationally and showing exactly what he's dealing with under Obamacare. He's trying to do the right thing by his employees, but he's got a tough road ahead.
"We're not cold people who don't want to insure people," he told the Huffington Post. "It's not a nasty greediness on our part. But if I'm unprofitable I can't go on, I can't exist and I can't employ anyone."
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Obama care is the beginning of the end of our country as we knew it. Its the first step towards socialism and i truly believe they don't want your business to fail but it will anyway. Ask yourself have you seen anything that our top heavy gov. has ever done that makes since. How about cash for clunkers and stimulus hahahah
I hope all the people who voted for Obama are reading these news stories and can actually do math to see what a loser they backed...again.
Beam me outs here Scotty.
I tell every employee who walks out the door to understand our government's intervention into my business has caused their unemployment.
For all of you who believe this is a political issue, I can assure you it's not. It's common sense. Wake up!
I have lived and workerd in a socialized healthcare system in Canada. I left in 1992 and worked in Saudi Arabia and then came to the US in 1995 in healthcare.
Socialized medicine does not work, very high taxes and little or no access to the system. Canada only has 35 million people, the US 350 million plus undocumented.
This is a train wreck getting ready to happen !
This is just wrong and shows the thinking of business men. Yes, I think they are self-centered, uncaring slugs. John Schnatter can afford to spend 250K to find his old 1970's camaro, but can't afford to provide insurance for his employees. How can CEO's who make MILLIONS of dollars be uncaring? We are one of the only countries on this planet who do not care for its workers. Many other countries are successfully providing healthcare and are still doing well. Yes, there are those who are not...greece, spain for example, but the ones who are doing well outnumber those who are not. I do believe in capitalism and making a profit, as well as self responsibility, but for folks who are making MILLIONS and thinking that because they have given someone a minimum wage job is such a wonderful way to shrug off further responsibility is annoying. I do not have any sympathy for those business owners who can't give back to the employees, or gripe because thay aren't getting their huge bonuses. I doubt I will ever eat Papa Johns again.
1. Make them contract employees.
2. Cut there hours back.
Again...government telling businesses how to run their businesses. Again...government mandating businesses either pay Uncle Sam or give workers raises that they may not be able to afford to give. Again...government making people buy something they either don't want or cannot afford.
Again...government working against the free market and manipulating the economy to their own ends.
Please tell me where the government gets this authority from.
Socialism? You decide...
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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