In an article in Forbes Magazine, Don Fox, the CEO of Firehouse Subs, discusses the actual impact of the Affordable Care Act on individuals in the restaurant industry. The Affordable Care Act, commonly known as Obamacare, insists that employers offer health insurance for all individuals who work full-time for an employer. However, the law also determines that a full-time employee is someone who works thirty or more hours per week. The author believes this provision will hurt both employers and employees alike.
For employers, there is a significant financial burden associated with this provision. Additionally, employers can no longer depend upon flexibility in scheduling practices. The restaurant industry requires this flexibility to meet the needs of the restaurant and provide a quality experience for the diner. Fox also discusses that this will hinder employees from working increased hours in an effort to improve income. Employers will hesitate to allow any individual to work thirty or more hours per week.
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The article raises several interesting questions. The article discusses the delays in quotes associated with the law. Employers were promised that the cost of the health care plans would be available several months ago. Still, this information is not available. This creates a sense of insecurity and unknown for both employers and employees. It also creates significant questions regarding how well the law is being implemented. The likelihood that employers will cut hours for employees is legitimate. News channels have indicated that many employers will do this. For individuals who struggle to pay the bills, this additional cut in hours will be extremely detrimental. If a person previously worked thirty-five hours per week, the loss of the extra five or more hours will create a tremendous economic burden for them.
Additionally, employers may struggle to work within this scheduling environment. They may be forced to hire additional part-time employees. Hiring and training are often a significant cost for any business. This provision of the law may therefore create tremendous difficulties for both employers and employees alike.
