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Darden Restaurants Cut Workers' Hours to Avoid Paying Health Care Coverage

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Darden Restaurants has stopped offering full-time schedules to many hourly workers in a few of its Olive Garden, Red Lobster and LongHorn Steakhouse eateries. 

Darden is reportedly taking the action to avoid the Affordable Care Act, which is scheduled to go into effect in 2014, reports Fox 35 (video below).

Under that law, also known as Obamacare, companies must provide affordable health insurance to employees working an average of at least 30 hours per week.

In an emailed statement to the Orlando Sentinel, Darden stated that cutting hours is "just one of the many things we are evaluating to help us address the cost implications health care reform will have on our business. There are still many unanswered questions regarding the health care regulations and we simply do not have enough information to make any decisions at this time."

Under the system that Darden is testing, certain employees are to be scheduled for no more than 28 hours each week.

UPDATE:

Rich Jeffers, Director of Communications at Darden, sent Opposing Views the following email statement:

Many reports said Darden was moving to a part-time workforce exclusively and that the company was moving its full-timers to part-time roles. That was never the case.
 
Darden was simply working to figure out how the company was going to handle the healthcare costs it will face starting in 2014.  One of many solutions Darden has been considering would be to adjust its full-time/ part-time mix.  However, Darden was clear in saying it would not make any decisions that would have an impact on our guest experience or employee engagement.
 
While Darden does not yet have a final staffing model for 2014, today’s announcement confirms Darden’s primary theory:  its full-time employees are an integral part of its success.  And, the data Darden collected around ‘guest experience’ proved this out. Darden will not sacrifice guest satisfaction – or employee engagement – for the sake of labor cost savings.

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Comments

imawildman's picture

People on both sides can say

People on both sides can say what they want about the Affordable Care Act, but one thing is obvious: it was written by people with feminist leanings at best, and misandrist leanings at worst. Case in point: the blatant sexism in the act. Check it out for yourself. Go to http://www.healthcare.gov/news/factsheets/2010/07/preventive-services-list.html#CoveredPreventiveServicesforAdults and see what preventative measures are covered. Notice anything strange? There are three categories of coverage - Adults, Women, and Children. Men do not have their own category of preventative care, as if men do not have gender-specific health concerns. Women get screenings for 22 services, including screenings for gonorrhea, Hepatitis B, Human Immunodeficiency Virus (HIV), and Human Papillomavirus (HPV). Men do not get the same screenings, which is ludicrous, since women get the diseases from men. While women get services for female-specific medical concerns like breast cancer and cervical cancer, men are not offered screenings for prostate cancer or testicular cancer. Women are screened for osteoporosis - men are not. Women - but not men - even get screening and intervention for tobacco use, although men are more likely so smoke. Women get contraceptive procedures, including tubal ligation, but men do not get vasectomies. How does that make sense? There's not a woman alive who can impregnate another woman - and yet the only source of impregnation is not offered contraception. Women get screening and counseling for domestic violence, but men do not, although most credible studies show that men are victims of domestic violence AT LEAST as often as women.

Whether you are a male Democrat or male Republican, this should outrage you. Why are men being discriminated against in ObamaCare?

What all of this shows me is that the Affordable Health Care Act was more concerned with playing political handball than it was offering health coverage to all Americans.

To sign a petition asking to have sexism removed from the act, go here: http://www.change.org/petitions/the-president-of-the-united-states-stop-sexism-in-the-affordable-care-act

gem's picture

The GOP did a great job of

The GOP did a great job of brainwashing the masses, as they did 47 yrs ago when they fought against Medicare, which has turned out to be the most popular & highest rated government program of all time.(http://www.kaiserhealthnews.org/Daily-Reports/2012/August/22/ryan-medicare-and-the-polls.aspx) This is the truth. Nationwide polls of those not even on Medicare yet & who favor Romney for President want few, if ANY changes to Medicare what-so-ever. The Affordable Healthcare Bill will be just as successful and Mitt Romney just told the world in the debate that he likes Obamacare/Romneycare too, though he'd like to tweak it just enough to take credit for it himself. The GOP had been working on a national healthcare policy of their own for more than a decade, as anyone remotely aware of Congressional history knows. The GOP isn't going to change this new healthcare act in any significant way because the powerful Insurance lobbies also love it. The GOP is just using their opposition- hype to influence uninformed voters they know will never bother to research the GOP's past proposals for the same bill. Wise-up! The RNC & DNC aren't that different from one another & the Net will easily provide you with all the legislation they've proposed & how each State representatives have voted. I know you can access the Net. Use it for more than playing games & sharing opinions. The only choice is between following Democratic/ Clinton-style economics or Republican/Bush-style economics. We've tried them both before & we'll probably try them both again & again over the next century. The only question is which economic philosophy do you want from 2012-2016?

canislupus's picture

What "ENG Tech" and

What "ENG Tech" and "HolySmokes" conveniently ignore in their posts is that we (i.e., THEY) will be paying for the health care needs of those workers cut to 28 hours when they show up in clinics, doctors' offices, and hospital emergency rooms with no insurance. Health services will be provided and the costs "written off" by the providers. The result is that the providers' general fees for services are raised across the board to recover the "non-recoverable" costs of providing care to the uninsured and underinsured.

Now, if ENG Tech and HolySmokes have employer-provided health insurance premiums or even partial insurance premiums paid by their employers (presumably, based on their posts and attitude, they are employed and enjoy some form of employer health insurance benefit), the next thing to happen is that their own health care costs will rise, and consequently the cost of their health insurance premiums will rise, and consequently again, just maybe their own employers are going to say, "we can't afford to cover you to the extent as in the past. We're going to reduce our contribution to your health insurance premium and you will have to pay more, or just maybe cut your hours to 28 per week. How do you like them apples?"

ENG Tech and HolySmokes, there ain't no such thing as a free lunch. The macro bundle of health care costs is a closed system, i.e., everything is in it, and one way or another it gets paid for, as it has for the past hundred years. The question is how do you want to pay for it? Because you're going to pay for it anyway.

Just to cite an example of only one piece of the problem: Know any cops or firemen or hospital workers? Ask them how many uninsured people get hauled off to ERs every day of the year, often via expensive ambulance services, be they private or more often than not, government provided. Ask how many of those people pay a stinking dime toward their bills, which can easily total in the thousands, tens of thousands, or hundreds of thousands of dollars. And that's okay with you? Is it okay with you that YOU are paying for it right now, already, without that dreaded Obamacare?

I'm tired of it. I'm tired of individuals ducking their responsibilities, companies ducking their responsibilities, and everyone else. The Affordable Care Act is an attempt to rectify that. For Darden Restaurant's part, they're quite happy to duck their responsibility so you can contribute to their corporate bottom line.

I'm sure you can't (won't) understand that because you simply dislike Obama, to the point that you are unable to think rationally about how the system is not working.

ENG Tech's picture

canislupus: are you aware

canislupus: are you aware that prior to Obama Care we had to pay for people who showed-up at an ER? So how does that change? My point was that Obamacare is claimed (in the media, from its supporters) to be a money saving bill. Given this, is it not surprising to find that companies are not keeping their employees on full time and just reap the savings that are being claimed? If the savings are real, why are these companies cuttings employee hours.

gregandrene's picture

To get them below the

To get them below the threshold where they have to pay for health insurance.

ENG Tech's picture

gregandrene: I will try this

gregandrene: I will try this so you don’t get lost. Prior to ACA, we had to pay for uninsured and underinsured people who showed-up at ERs for medical care. Now after ACA, we will still pay for those very same people. The media has been spreading the story that the ACA will reduce the cost of medical insurance for those who pay for it. Just to use numbers and make this easier to follow. Let’s say the Darden Restaurants employed 1,000 FT employees nationwide. If they will save even $10 per employee with the ACA, why would they push those employees to PT and not save $10,000? Your answer is that they will save more money by not paying any portion of the insurance at all. That would take the turn-over out of the equation. Is it that you think that they are willing to waste money on turn-over instead of saving money on insurance?

gregandrene's picture

I'm not lost. You haven't

I'm not lost. You haven't been paying attention. I know how the non insured ER visits work, but allegedly, after ACA, there won't be any uninsured. Allegedly.

Corporations are shunting full time employees to part time, and not hiring more full time employees so they will not have to pay for health insurance. This saves the corporation money. Just like WalMart, people who NEED jobs aren't going to quit just because of health insurance. Most people don't have that luxury. No insurance premiums means more money on the bottom line.

fsilber's picture

I don't think "ENG Tech" and

I don't think "ENG Tech" and "HolySmokes" ignore that we'll be paying the health care costs of those cut to 28 hours. I think they're quite aware that these results of Obamacare will be bad. Just because the Affordable Care Act attempts to rectify problems doesn't mean that it will.

canislupus's picture

fsilber, I disagree that ENG

fsilber, I disagree that ENG Tech and HolySmokes are aware that they will be paying for the health care costs of those without insurance.

I agree with you that we don't know if the ACA will rectify a damn thing. But what we have now and have had for a hundred years is a colossal failure, and we're all paying for it as it stands right now.

ENG Tech's picture

canislupus: "WE" paid for

canislupus: "WE" paid for them prior to the ACA. So by forcing employers to pay for specific medical procedures that do prevent diseases is not health care. And then employers reducing the workforce that they pay for, just burdens the overburdened system. Repeal the portions of the ACA that require specific procedures to be paid for and see what happens.

beekster's picture

Ah yes, just another one of

Ah yes, just another one of those hidden surprises in the bill that had to be passed before we could see what was in it... no thanks to Harry Reid and Nancy "the scag" Pelosi. Never a dull moment with this bunch!

ENG Tech's picture

I find this utterly

I find this utterly surprising as all the media studies have “shown” that Obamacare will save people money. You would think that companies would be hiring extra unneeded employees just to rake in the savings. Just another real life example of how unaffordable the Affordable Care Act really is.

HolySmokes's picture

Obama is ruining us. He

Obama is ruining us. He should think about things before cramming them through on us like they did on the healthcare bill. He promised to be non-partisan but didn't do that. No wonder the Repub's. got ornery on him, and now we could all suffer do to this mess -- a mess where Pelosi said they needed to vote for it so they could find out what's in it? Stupid!

gregandrene's picture

The Republicans had already

The Republicans had already decided to "just say no" to anything Obama proposed long before Obamacare was debated. He tried to be nonpartisan, but the GOP would have nothing of it.

imawildman's picture

He tried to be non-partisan?

He tried to be non-partisan? Really? In his campaign he promised to "turn the page on the ugly partisanship in Washington, so we can bring Democrats and Republicans together to pass an agenda that works for the American people."

What does the Politifact "Obameter" say on the issue? "Here at the Obameter, though, we measure outcomes, not intentions. Obama said he would "bring Democrats and Republicans together to pass an agenda.” That hasn't happened. We rate this Promise Broken.

gregandrene's picture

Well if the Republicans had

Well if the Republicans had put forth a good faith effort, he would have succeeded. But they had already made up their minds to oppose ANYTHING he proposed. They said they would "just say no" to Obama and proclaimed this to their constituents. Their entire agenda this term was to ruin the President, and they made no secret of it. They weren't working in the best interests of the country, simply to make Obama look bad. For some reason, a lot of people think the president can pass laws by himself; approve a budget by himself. Well, those fools blame Obama for everything, ignoring the fact that congress has the power to legislate and tax, not the President.

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