Yesterday I posted about an IT firm cutting hours as a result of the economic conditions ahead.
Hours were going to be cut. Instead of a 5-day work week the schedule would now be built around a 4-day work week.
My suspicion is that the firm is targeting a work week that comes in under 30 hours a week.
A fast-food chain is slashing employee hours so franchise owners don’t have to pay health benefits. Around 100 local Wendy’s workers have learned their hours are being cut. A spokesperson says a new health care law is to blame.
The penalty for failure to offer insurance is $2,000 per employee. In this case, $200,000 is a lot of money:
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.
The irony, of course, is that fast food chains typically employ the younger worker. Folks who might be entering the job market for the first time and are learning valuable work skills. Skills that they may not otherwise acquire. And the reason they are being impacted is a law that attempts to help provide medical care to the population. Well, these kids are the healthiest segment OF that population.