Regal has more than 500 theaters in 38 states. Last month, it reduced shifts for non-salaried workers to 30 hours a week, enabling them to not pay for their health insurance.
The Affordable Care Act states that companies of a certain size have to provide health insurance to employees who work more than 30 hours a week.
In a memo, Regal said they had to increase their health care budget to cover those who are now eligible, resulting in the loss of hours for other employees.
"In addition, some managers have requested guidance on what they should tell those employees negatively impacts and, at your discretion, we suggest the following," the memo said. "To comply with the Affordable Care Act, Regal had to increase our health care budget to cover those newly deemed eligible based on the law's definition of a full-time employee."
"To manage this budget, all other employees will be scheduled in accord with business needs and in a manner that will not negatively impact our health care budget."
In 2011, the company had a revenue of $2.8 billion. It is following the steps of Applebee's, Olive Garden and many other businesses that are cutting employee hours to avoid paying for health insurance.
Many colleges are also cutting back hours, including Palm Beach State College, and Kean University.
Employees across the country are angered by the cut in hours, many relying on full-time work to provide for their families.
"In a time where 40 hours is just getting us by, putting these kind of financial pressures on employers is a big step in a direction far beyond the reach of feasibility for not only the businesses, but for the employees who rely on their success," a manager at Regal, who asked not to be named, said.