Fresh off the heels of a report indicating some Wendy’s franchisees are doing the same, several Taco Bell stores are slashing employee hours in an attempt to sidestep the burdensome costs associated with Obamacare.
The same week a Wendy’s franchisee in Nebraska announced it was cutting employee hours to avoid paying for health care coverage mandated by Obamacare, a Taco Bell franchisee based in Missouri is doing the same.
According to News 9, Treadwell Enterprises trimmed its full-time employees’ hours to under 28 hours a week, which is the limit for coverage under the new health insurance mandate.
Employees found out about the cut in December. Thus far, about 20 employees have had their hours reduced.
Under Obamacare, a company that has more than 50 full-time workers falls under the new health insurance mandate.
In 2010, John Boehner warned of this very thing using another Taco Bell franchise owner as an example:
Last week, I was honored to have two small business operators … join me to talk about the destructive effect President Obama’s health care law is having on small business’ ability to create new jobs and help get our economy moving again.
Todd operates a number of Taco Bell and UNOs franchises in the northern Cincinnati area with his wife Becky. At a time when Ohio’s unemployment rate is 11 percent, Todd offers hundreds of local Ohio workers the chance to prove themselves, and work their way up the ladder in the restaurant business…
But Todd says he is very concerned about the impact that the president’s new health care law will have on his ability to retain and hire new employees. Todd estimates his business will likely be facing at least $250,000 in new taxes as a result of ObamaCare, costs that may force Todd and Becky and hundreds of employers like them across Ohio to make job cuts instead of hiring additional workers.
This continues a disturbing trend for restaurant and fast food chains. Employee hours have been cut at Red Lobster, Olive Garden, and Denny’s, along with the aforementioned Wendy’s and Taco Bell stores.
It is disturbing mostly because employees at these stores aren’t exactly making hedge fund manager type money. Managers and higher-ups within the chains, those already with healthcare coverage, are not having their hours scaled back. It is the lower-income earners who are being told ‘not only are you not getting the healthcare coverage you’ve been promised, but we’re also cutting back your earnings to avoid paying penalties for those we do have to cover’.
Take Johnna Davis, a single mother of three children, for example. Davis is a Taco Bell employee in Oklahoma (the third state this has happened) who recently had her hours scaled back. The Huffington Post reported on her ordeal.
A Taco Bell employee in Guthrie, Okla., is speaking out after the fast-food franchise cut her hours to avoid costs associated with Obamacare, reports News9.
For Johnna Davis, a single mother of three who saw her hours fall in December to 28 hours a week, the change not only means a smaller paycheck. It also strips her of the right to receive health benefits from Taco Bell, a right that would have kicked in under Obamacare in 2014 had the franchise continued to give Davis a full-time schedule of hours.
Owners of fast-food franchises across the nation are blind-siding hourly employees by cutting their weekly hours — and, in turn, their paychecks — to dodge Obamacare costs.
At a time when a majority of Americans are simply trying to make it to their next paycheck – especially those in the fast food industry – Obamacare is starting to unleash it’s unsustainable destructive costs on businesses.
And it is only going to get worse…