Obamacare Delay Leads to Premature Employment Cuts

| by Sarah Siskind
article imagearticle image

One week ago, the administration ordered a delay in the implementation of the employer mandate in Obamacare. The mandate orders companies with more than 50 employees to provide their workers health insurance. Many for whom the requirements proved excessive and complicated view the delay in Obamacare as a godsend, but for others it elicits a groan.

Many companies that started preparing early for Obamacare already made major cuts in hiring and worker hours. Now, with the delay in place, these cuts were premature.

The fast-food chain, Fatburger, has cut many employee hours beneath the “full-time” threshold of 30 hours under Obamacare. CEO Andy Wiederhorn freely admits to sharing employees between other franchises so that one worker, working many part time shifts will still work the same amount of hours but without qualifying as a fulltime employee. To get below the 50-employee mark of obligation, Wiederhorn has even closed down restaurants.

"All it's doing is causing confusion, anxiety and the workers are paying the price," Wiederhorn said. "Now, the mandate's a moving target. It's very, very challenging."

It might come as no surprise a business called "Fatburger" has sought ways to avoid paying for health care, but Fatburger is not alone. Many companies openly share tactics like this “slash and share” method to avoid Obamacare.

Though the vast majority of employers already provide health care for workers, the mandate proves particularly burdensome to small business owners who retain hope that the delay may prove an incremental step toward elimination.

Sources: CNN Money