Fast Food Restaurants Struggle After Cutting Workers To Avoid ACA Fines
“A lot of the fast food franchisees that did this are now coming back and saying, it was a great idea for reducing the number of people that I have to offer benefits, but now I can’t run my restaurants,” says Kaya Bromley, an attorney who consults with employers on how to comply with the Affordable Care Act.
To Avoid Obamacare, Some Fast Food Restaurants Cut Staff Hours. Did It Work?
Starting January 1, businesses with 50 or more full time employees must offer health insurance to all full time staff or pay a hefty fine. Employers with 100 or more workers had to start offering coverage last year. But smaller businesses that operate on lower margins, especially restaurants, complained loudly about the cost. And some fast food franchise owners, figured out a way to avoid paying for coverage: just make everyone part time. (Demboksy, 1/25)