NBC News talks to businesses about employer mandate, finds most cutting hours
Despite the one-year delay of ObamaCare’s employer mandate, businesses still say provision to be a headache for them and their employees. NBC News recently talked to nearly 20 business owners, finding that nearly all of them say the employer mandate is forcing them to cut employees’ hours:
NBC News spoke with almost 20 small businesses and other entities from Maine to California, and almost all said that because of the new law they’d be cutting back hours for some employees – an unintended consequence of the new law.
At St. Petersburg College, a public university in Florida where most of the faculty is part-time, 250 have had their hours reduced for the fall term because the college said it can’t afford to offer them health insurance.
Many businesses are reluctant to talk about cutting hours for fear the public will view them as stingy or uncaring about their workers. But [a Subway franchisee] said that many small businesses have very small profit margins and that while he already provides health insurance to senior employees, offering health insurance to many more workers would require him to pass a significant price increase on to his customers.
This employer mandate requires businesses with 50 or more full-time employees to offer health insurance benefits or face a punitive tax. Because ObamaCare defines a full-time employee as someone who works 30 or more hours a week, many employers have been scaling back hours or hiring only part-time workers.
Of course, the White House denies that the employer mandate has any sort of consequences. NBC News quotes a White House economic advisor who says that the correlation between businesses cutting hours and the employer mandate is “anecdotal.”
But businesses and employee are feeling the pain of the employer mandate. Unfortunately, the White House and the administration are continuing to ignore them and moving ahead with implemenation efforts, though delayed for a year, of this destructive part of the law.