Welcome to Part Time Nation (Brought to You By the New Healthcare Law)

Obamacare creates perverse incentives for employers to cut hours

If you are a full time non-salaried employee in a company with 49 or more other full time employees, your employer may be inclined to cut your working time in an effort to avoid the cost of Obamacare penalties. Many companies plan on doing just that, especially in retail and food service.

In the very near future, full-time blue collar jobs will be even harder to come by.

For many workers in relatively good health (the young) who earn over $15,000/year and are not full time (as many more workers are likely to be in the near future) it’s not such a good deal at all. They will have to buy insurance in exchanges or face a fine.

This seems an odd turn for a group of people who have been hit most in the recession.

The question we have is, why this perverse incentive which encourages employers to cut hours for employees, was allowed to become law in the first place? In the rush to force through Obamacare, life may have been made much more difficult for those many proponents of the Affordable Care Act said they wanted to help.

(From FreeEnterprise.com)

Why would companies consider shifting to part-time workers? Under the health care law, if an company has more than 50 “full time equivalent” workers, a combination of full and part-time employees, but doesn’t offer “affordable” coverage that meets the government’s minimum value standard, the company will have to pay a penalty. This penalty is determined by the number of full-time employees minus 30 full-time employees. So to reiterate a very important point: part-time workers are not part of the penalty formula. The health care law creates a perverse incentive to hire part-time versus full-time workers.

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12 comments
Jan Birks
Jan Birks

Why couldn't they let us shop in other states? I thankfully have healthcare, but that could change. We should be able to shop for healthcare insurance, like we shop for car, homowners, renters insurance.

Sharon Cosentino
Sharon Cosentino

ob care has already raised the rates on healthcare, it is only going to get worse. people wake up and search out the facts

Ben Calvin
Ben Calvin

Want to know something? IBM moved to India and is now consulting for big companies in the usa.

Ben Calvin
Ben Calvin

I was watching mass exporting of jobs a long time ago. For those who quickly forget the 80, many bottom jobs disappeared. Early 00, many more jobs disappear. If you didnt know there is a massive shift of wealth going to China and India. Even Starbucks is opening up in India. I wish people would wake up. I feel we will be entering into another age of McCarthyism.... just sayin..

Curtis Owens
Curtis Owens

it was that way when Walmart got into the game. nothing new.

David Wilson
David Wilson

Welcome to LAYOFF Nation!! NO JOBS or HIRING Here!!

Aidan Haggerty
Aidan Haggerty

Recession 2.0 is the best case scenario; the worst case is a economic depression like the one we experienced in the 1930's.

David Wilson
David Wilson

The Myans were RIGHT! Will there be MASSIVE LAYOFFS all around America?

Wayne Wilbur
Wayne Wilbur

I think Obama will push this country into a major Depression.

Aidan Haggerty
Aidan Haggerty

Businesses are laying off people because of healthcare costs...Recession 2.0 here we come...