#1 Wendy’s Franchise Cuts Employee Hours To Part-Time To Avoid Obamacare
01-07-2013, 08:13 PM
- Join Date
- May 2008
DUers shocked and angry that small businesses act in their own best interest.
warrior1 (8,559 posts)
Wendy’s Franchise Cuts Employee Hours To Part-Time To Avoid Obamacare
Not long after the owner of the Olive Garden and Red Lobster chains admitted their anti-Obamacare campaigns hurt more than helped, the owner of a Wendy’s franchise in Omaha, Nebraska plans to cut 300 employees’ hours to part-time to avoid providing them with health care coverage.
By moving workers to part-time status in order to avoid paying for their health benefits, the Wendy’s franchise would shift the costs of insurance coverage onto hundreds of employees:
The company has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, vice president of operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance.
But anecdotal evidence suggests this strategy may backfire on the Omaha Wendy’s operations. This fall, Denny’s quickly distanced itself from a franchisee’s similar ploy, while Darden Restaurants saw a sharp 37 percent drop in profit after threatening to cut workers to part-time.
fuckersleftstreet (21,639 posts)
4. Why didn't Obamacare address this?
no one could have predicted...Systematic Chaos (8,032 posts)
7. Don't worry about it. They're about to destroy their business with a one-two punch.
Completely fucked morale + spike in turnover = horrible product and service.
Bye-bye Wendy's franchisee. It's been nice knowing ya.DogPawsBiscuitsNGrav (58 posts)
11. There may be several thousand companies planning on doing this that we haven't heard
about. If they all start doing it, we obviously can't boycott them all and cutting employee hours could be the final nail in the coffin of the economy. This could get really ugly if minimum wage workers are forced to pay hundreds of dollars a month out of their own 28 hour a week pay checks.
Does anyone know if there was a back up plan for this situation?Ikonoklast (20,497 posts)
12. Yes, the businesses that have been doing it then see that their help quits in droves
leaving the dumbass employer up shit creek without a paddle.
They then have to do an emergency hire to fill the vacant slots, all the while losing business as their service goes down the tubes.
Many quietly rescind their public bloviating soon after discovering they just shot themselves in the foot.
Some had to do it publicly, like Darden.
But, keep up with the Concern Posting!
I see you are totally ignorant of the provisions of the ACA and where low-income employees fall under the provisions of that law.
No one making minimum wage will have to pay 'hundreds of dollars a month' out of their paychecks for health care.BWC (12 posts)
17. I used to work for a Darden restaurant
They cut everyone down to less than 30 hours. Obamacare is not going to be easy to implement that's for surestultusporcos (56 posts)
21. We have the power to stop this nonsense
Stop eating corporate food.
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