Monday, October 15, 2012

Incentivizing Part Time Jobs

Obamacare will now be responsible for both reduced hiring (see for example the stories on medical device companies scaling back) and reduced hours for many workers.  My sense is that the latter cuts will disproportionately affect entry level workers, though it's hard to feel too sorry for them as they seemed to be overwhelmingly in favor of the law.

From the story:

Darden, the world's largest casual-dining company and one of the nation's 30 largest employers, said it offers health insurance to all its approximately 185,000 employees. Many are offered a limited-benefit plan. That type of coverage is being phased out under health-care changes, which will ban annual limits for most plans.
About 25 percent of Darden workers are full time, meaning they work more than 30 hours a week. Though employees say Darden already offers traditional health insurance to full-timers, Janney Capital Markets analyst Mark Kalinowski said the cost of providing that could become higher for Darden under the Affordable Care Act. Because that law requires everyone to have health insurance, more workers will likely choose its coverage, Kalinowski said.
"Even a modest jump up in the amount of employees that decide they want the insurance you're offering could have a meaningful impact on your bottom line," he said.
Under the system Darden is testing, employees are to be scheduled for no more than 28 hours each week. They can run over that if things get busy, but Darden acknowledged they are not supposed to exceed 30 hours.


Blogger Unknown said...

After going through all the facts i am agree with your point of view that obamacare is reducing job hiring, companies are reducing job hours for their employees so that they don't need to pay health incentives to their employee work for less time.
hunter health jobs

11:43 AM  

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