BEFORE the recession, Richard Clark’s cleaning company in Florida had
200 employees, about half of them working full time. These days it has
about 150, with 80% part-time. The downturn explains some of this. But
Mr Clark also blames Barack Obama’s health reform. When it comes into
effect in January 2015, Obamacare will require firms with 50 or more
full-time employees to offer them affordable health insurance or pay a
fine of $2,000-3,000 per worker. That is a daunting prospect for firms
that do not already offer coverage. But for many, there is a way round
the law.
Mr Clark says he is “very careful with the threshold”. To keep his full-time workforce below the magic number of 50, he is relying more on part-timers. He is not alone. More than one in ten firms surveyed by Mercer, a consultancy—and one in five retail and hospitality companies—say they will cut workers’ hours because of Obamacare. A hundred part-timers can flip as many burgers as 50 full-timers, and the former will soon be much cheaper.
http://www.economist.com/blogs/democracyinamerica/2013/08/health-reform-and-employment
Mr Clark says he is “very careful with the threshold”. To keep his full-time workforce below the magic number of 50, he is relying more on part-timers. He is not alone. More than one in ten firms surveyed by Mercer, a consultancy—and one in five retail and hospitality companies—say they will cut workers’ hours because of Obamacare. A hundred part-timers can flip as many burgers as 50 full-timers, and the former will soon be much cheaper.
http://www.economist.com/blogs/democracyinamerica/2013/08/health-reform-and-employment
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