Thursday, October 11, 2012

Olive Garden and Red Lobster test the Obama-Care waters by reducing employees hours



Imagine having employer paid health insurance suddenly ripped away from you because your employer legally reduced your employment status from full-time to part-time? This rarely talked about provision in Obama-Care will hit countless numbers of employees who had (if only for a short time) a false sense of security through their employer paid health program, come 2014. Some are feeling the pain now.

By simply reducing their hours to less than 30 a week, some of the largest corporations in America quickly took away the security of health insurance from their faithful employees this week. In the case of Olive Garden and Red Lobster, about 75% of their current employees were already considered part-time.

Now, even more of their staff will be added to that list as they “test the waters” by analyzing the impact of the impending changes all employers will face in 2014 under the current Obama administration.

Starting 2014, under Obama-Care employers would be required to provide healthcare to their full time employees. Many employers are being forced to think ahead now, as they prepare to make a choice between reducing hours or eliminating staff to pay for what they will face in the near future.

So what is the possible domino effect should Obama-Care remain intact? Downsizing, reduced hours and business closures are three of the likely decisions most companies, large and small, will be forced to consider. Unemployment will undoubtedly rise to an even higher rate in the near future as employers prepare for the change. New business start ups will be profoundly affected, as well.

Downsizing will shift the already overworked staff at many corporations into accepting additional responsibilities or face no responsibilities at all through job loss. There are few alternatives left when it comes to an already pinched bottom line, especially when we’re living in a failing economy with a not so bright future at the present time.

Anytime, an administration requires businesses to bear the burden of a healthcare policy, designed to slowly eat away at their ability to stay profitable, someone pays for it. Typically that “someone” is the employee. It’s a lot easier for an employer to require more from an employee or reduce their hours, than it is to keep the same amount of staff and pay out more benefits.

The inevitable outcome of Obama-Care is headed in a devastating direction. The results will either be underemployment or unemployment; both will throw our economy even further under the bus.

Quick Tips for Wellness: Remember the impact of what you’re voting for on November 6th.

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