Despite repeated denial by the administration, companies are cutting the hours of their already struggling employees in order to remain under the cap for Obamacare, which is presently 30 hours a week. Investors.com has released at with over 300 companies, who have cut the hours of their employees. About 200 of them are college campuses.
Other companies of note include Mainesubway (Subway), NEMF (New England Motor Freight), White Castle, CKE restaurnts in California (They are replacing all their full time help with part timers with 29 hours maximum), and Republic Foods (Burger King franchises).
The scary part is companies still have nearly a full year to decide whether to cut hours or not. And since part timers are not included in the 50 employees needed to become eligible for mandatory coverage, companies can simply do away with full time positions and replace them with part timers. These numbers will likely increase greatly by the end of next June.
The hardest part of solving a problem is admitting that a problem exists and apparently, that is something the president and his administration refuse to acknowledge. Both Jay Carney in his daily briefings and President Obama have repeatedly denied that this is hurting the working poor and they even refuse to acknowledge that companies are cutting hours to meet the standards in the Affordable Care Act.
In his arguments, President Obama has cited a republican, Mark Zandi, agrees with him and his course of action. However, although Zandi did work for alleged republican John McCain, he is a registered democrat and has been an Obama supporter.
The cutting of hours is not the only problem people face in dealing with Obamacare. Wegmans grocery stores built a solid reputation as an employee friendly employer, who has always offered insurance for their part timers as well as their full time employees. Due to the cost of the ACA, Wegmans has had to review that policy and have now taken healthcare from their part timers.
Other employers such as UPS have decided to quit offering coverage for spouses. (Children will remain covered until age 26) Several other major employers have either reached the same conclusion or are working on it. Unless these spouses work at jobs that offer their own insurance, they will be forced to buy their own policies.
And even small sized doctor’s offices are finding they need at least one full time employee to handle compliance and documentation necessary to comply with the law. That is unless they decide to hire two part timers to save money.