Employers are beginning to consider Obamacare imposed fines of $3000 per full time employee and are starting to experiment with cutting those 40 hour weeks to 30 hour weeks to avoid the fines. Shifting more workers to part-time status to avoid providing coverage is being explored by several large US employers including Darden Restaurants (Olive Garden, Red Lobster, and others), one of the nation’s top 30 employers with over 185,000 employees. An article in the Orlando Sentinel states other companies, including the White Castle hamburger chain, are also considering the same. McDonald’s is also looking at its number of full time workers.
Darden states this test is taking place in ‘a select number’ of restaurants in four markets, including Central Florida. But you have to wonder how many other employers, including maybe your own, are considering similar moves. What would a 25% decrease in the hours you are working mean to your paycheck, to your lifestyle? Further, do you work for a company with 50-70 employees? Employers with over 50 employees are also affected by the Obamacare fines. Any employer with 60 full-time employees is probably looking at cutting 10 of those positions and hiring part-time employees.