Wendy’s, Taco Bell Cut Employee Hours to Avoid Obamacare Mandate
Not long after the Supreme Court approved Obamacare, the CEO of Papa Johns, as well as the owner of the Red Lobster and Olive Garden chains, all admitted that they would be actively working to circumvent the law. The admissions backfired, and all of employers quickly backtracked from their anti-Obamacare pronouncements.
Now the owner of Wendy’s is planning to cut the hours of part time employees in order to avoid the Obamacare mandate.
If the franchise moves its workers to part time status, it won’t be forced to pay for their insurance:
The company has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, vice president of operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance.
Taco Bell workers also reported having their hours cut in response to Obamacare:
The Taco Bell in Guthrie cuts its full-time employees’ hours to avoid mandates under the new health care law.
Now, a mother of three who works at that restaurant is speaking out. Under the Affordable Care Act, any company that has more than 50 full-time workers falls under the new health insurance mandate.
We talked to the company that owns the Guthrie restaurant today, and it confirmed the cuts. Now, employees there aren’t allowed to work more than 28 hours a week.
The Atlantic recently reported on how stingy the owners of fast food restaurants are being with their profits:
Fast food weathered the recession, and the biggest names are seeing big profits. Yum! Brands, which runs Pizza Hut, Taco Bell and KFC, saw profits up 45 percent over the last four fiscal years, and McDonald’s saw them up 130 percent. (After Walmart, Yum! Brands and McDonald’s are the second and third-largest low-wage employers in the nation.) Yet those profits are not being passed on to workers like Harris and Jantuah, who remain stuck at or barely above a stagnant minimum wage.
It isn’t that these companies can’t afford to cover more workers, it’s that they don’t want to. These corporations have made millions in profits over recent years, and yet, still they refuse to raise wages for workers or offer health insurance. They refuse to share any of the wealth with workers and, instead, prefer to hoard the money for executives and shareholders.
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