As the date for the actual implementation of many of the provisions of Obamacare looms ever nearer, many employers are responding to the requirement that all full time employees get insurance coverage by cutting their employee's hours so that they don't have any (or very few) full time employees:
So that should really help improve the quality of life for these employees. Instead of one full time job, now they get to work multiple part time jobs or take a pay cut as a result of working fewer hours. Thanks, Obamacare!
This may be an "unintended consequence" of the law, but it was as predictable as the sun rising.
In an experiment apparently aimed at keeping down the cost of health-care reform, Orlando-based Darden Restaurants has stopped offering full-time schedules to many hourly workers in at least a few Olive Gardens, Red Lobsters and LongHorn Steakhouses.
Darden said the test is taking place in "a select number" of restaurants in four markets, including Central Florida, but would not give details. The company said there has been no decision made about expanding it.
In an emailed statement, Darden said staffing changes are "just one of the many things we are evaluating to help us address the cost implications health care reform will have on our business.
"I think a lot of those employers, especially restaurants, are just going to ensure nobody gets scheduled more than 30 hours a week," said Matthew Snook, partner with human-resources consulting company Mercer.
Darden said its goal at the test restaurants is to keep employees at 28 hours a week.
Analysts said limiting hours could pose new challenges, including higher turnover and less-qualified workers.
"It's a real problem for restaurants," said Howard Penney, a restaurant analyst and managing director for Hedgeye Risk Management.
At a new Olive Garden in Stillwater, Okla., former busboy Keaton Hasty said employees were routinely limited to 29 1/2 hours.
"It was 29 1/2, and they'd kick you out," said Hasty, a college student who now works at a pharmacy. "They'd always print off a little slip every day and say who was getting close."
So that should really help improve the quality of life for these employees. Instead of one full time job, now they get to work multiple part time jobs or take a pay cut as a result of working fewer hours. Thanks, Obamacare!
This may be an "unintended consequence" of the law, but it was as predictable as the sun rising.