Companies are curtailing hours in an effort to obey the Obamacare mandate. If a company has 50 or more employees they must provide health insurance to any worker working 30 hours or more. The alternative for the company is a stiff fine. Managers at Burger Kings and Taco Bells across the nation are sharpening their pencils and changing shifts.
The poor and unskilled are the ones who will feel the pain first (as is usually the case). But small business owners, as the Wall Street Journal reports, are feeling it too. The cost of reducing workforces and shuffling people around is immense, especially in the food service world where margins are thin and getting thinner.
But some companies and many unions won’t have to comply (at least for a good while) as they got waivers from the mandate from the White House. This is a huge advantage for those lucky enough to get an executive blessing. Why is it that Papa Johns must comply but the International Union of Bricklayers & Allied Craftworkers does not have to?
It’s good to have friends at 1600 Pennsylvania Avenue I guess.
This is not what the economy needs right now. But you know what would be a good idea? Raising the minimum wage. That’ll help the economy.