Unexpected consequences: Restaurants making more employees part-time to avoid Obamacare mandate and penalties...
Ironically,
Darden's CEO is an Obama supporter...
NEW YORK — The owner of Olive Garden and Red Lobster restaurants is
putting more workers on part-time status in a test aimed at limiting
costs from President Barack Obama’s health care law.
Darden Restaurants Inc. declined to give details but said the
test is only in four markets across the country. The move entails
boosting the number of workers on part-time status, meaning they work
less than 30 hours a week.
Under the new health care law, companies with 50 or more workers
could be hit with fines if they do not provide basic coverage for
full-time workers and their dependents. Starting Jan. 1, 2014, those
penalties and requirements could significantly boost labor costs for
some companies, particularly in low-wage industries such as retail and
hospitality, where most jobs don’t come with health benefits.
Darden,
which operates more than 2,000 restaurants in the U.S. and Canada,
employs about 180,000 people. The company says about 75 percent of its
employees are currently part-timers.
Bob McAdam, who heads
government affairs and community relations for Darden, said the company
is still learning from the tests, which was first reported by the
Orlando Sentinel.
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