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A Growing Trend: More Restaurants Cutting Employees’ Hours in Preparation for ‘Obamacare’

Jan. 10, 2013 8:46pm Becket Adams

As we drawer closer to the full implementation of The Patient Protection and Affordable Care Act (i.e.”Obamacare”), a growing list of restaurants and eateries have decided as a cost-cutting measure to cut back their employees’ hours.

A Taco Bell in Guthrie, Okla., for example, has cut “its full-time employees’ hours to avoid mandates under the new health care law,” News9.com reports.

“We talked to the company that owns the Guthrie restaurant today, and it confirmed the cuts. Now, employees there aren’t allowed to work more than 28 hours a week,” the report adds.

News9.com – Oklahoma City, OK – News, Weather, Video and Sports |

Under threat of fine, “Obamacare” requires that all employers provide insurance to full-time employees. Therefore, a few eateries has opted to demote their staff to not full-time.

“They informed everybody that nobody was considered full-time any longer, that everybody was now considered part-time, and [they] would be cutting hours back to 28 hours or less due to Obamacare,” said former employee Johnna Davis.

“Several of the other people I work with, some of them are single parents, and we do the best we can, and 28 hours a week just isn’t going to cut it for the bills,” she said.

Next up, Wendy’s.

“A Nebraska Wendy’s franchise is the next to try what has become a telling trend: Cutting employee hours to avoid paying for health care under the Affordable Care Act’s requirements,” Times 24/7 reports, citing a recent WOWT article.

“About 100 workers at 11 Omaha-area restaurants have already seen their hours cut to 28 per week,” the report adds.

Remember when we said that a “growing list of restaurants” have chosen to cut employees’ hours? Yeah, we weren’t making that up.

“The trend started months ago: In November, Papa John’s CEO John Schnatter said that he would also dodge the requirement by making more workers part time,” Times 24/7 notes.

“Darden Restaurants, owner of the Olive Garden and Red Lobster chains, announced a similar plan in October, but negative backlash forced the company to abandon the idea. Darden blamed the ordeal for a dramatic 37 percent drop in fourth-quarter profits,” the report adds.

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Comments (42)

i have black immunity
Posted on January 11, 2013 at 12:53pm
Welcome to the abomination of the Owebamanation which will soon collapse in Owebamageddon.

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glckgrl
Posted on January 11, 2013 at 11:41am
There is an IRS publication that suggests this would be a foolish proposition. The Regime would go after those companies for not collecting, and paying, income taxes on wages, as the worker would get a 1099 and no taxes withheld. Sure there is an argument for it, but it is a dangerously slippery slope–and the company who has to defend itself against the IRS is going to tank financially, and quickly! IRS can be relentless and can seize company assets; thus, your business could close.

Please, people, do NOT fire and rehire employees without a written opinion from your CPA and your lawyer, as well as their written confirmation of current malpractice insurance for a very large amount!

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commoncents5
Posted on January 11, 2013 at 11:08am
Could all employers fire all employees and hire them back as contractors?

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- searcher619
  Posted on January 11, 2013 at 3:19pm
  Well not sure if you can go the contractor route in fast food/restaurant business but not sure about the regulations governing that.
  
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commoncents5
Posted on January 11, 2013 at 11:04am
Is it possible that all employers could fire all employees and hire contractors?

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- DZ-015
  Posted on January 11, 2013 at 12:32pm
  Not individually, but a company could contract with a staffing company to provide workers. The staffing company would then be responsible for all taxes, and would also be on the hook for health care if the worker was on the job more than the minimum hours per week to trigger the Obamacare coverage.
  
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jessieH
Posted on January 11, 2013 at 10:18am
Why not just tell the government to go regulate themselves. Go on strike against the government. A nationwide strike will throw them into a tailspin. Seriously, the only real answer is a recall of every member of both houses of Congress.

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- searcher619
  Posted on January 11, 2013 at 3:20pm
  A nation wide tax strike in April. now THAT may get their attention.
  
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ZOZOMAN
Posted on January 11, 2013 at 10:13am
Karma is a bitch……….

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- ryanalicia
  Posted on January 11, 2013 at 12:23pm
  im sure most of them voted for obama so they got exacttly what they voted for. i dont feel sorry for them at all.they were too stupid to learn what obama was all about.
  
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OBUMAURMAMA
Posted on January 11, 2013 at 10:12am
Talked to a couple of these fast food employees, and they said that it’s the chains fault and they would vote for Obama again, and he’ll be taking care of all those who get laid off and cut back.
What ya goin to do when dey is dis ig nor ant?

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- shorelineliz
  Posted on January 11, 2013 at 10:48am
  Exactly. These Obamabots don’t see the connection between their hours and jobs getting axed and their votes for Obama. Dullards every one of them. I wish they would direct the anger and blame where it should go toward Obama and Obamacare but they won’t. Deluded morons. As Pravda Magazine states, “President Obama was re elected by low class and uneducated people.” Couldn’t agree more.
  
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landowner
Posted on January 11, 2013 at 9:35am
Elections have consequences? I am sure Mitt wasn’t conservative enough though…. /sarc

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- shorelineliz
  Posted on January 11, 2013 at 10:20am
  Exactly! why isn’t this lady blaming Obamacare? Put the BLAME where it should go lady! Acck!
  
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term limits for congress
Posted on January 11, 2013 at 9:30am
Why can’t the people who get their hours cut pick up additional hours at another restaurant? I’d like to see a story where two franchisees work together to help employees keep their 40+ hours per week.

I know – that’s not the point of this article. The law is going to hurt every sector of the service industry.

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- StandingOnMyHead
  Posted on January 11, 2013 at 11:04am
  Companies have said they would like to be able to do that, but if the restaurant is owned by the same franchise company they can not because the employee’s aggregate hours are considered under the law. Unfortunately many restaurants are owned by the same company in smaller communities. These are the unintended consequences of government involvement when it comes to them setting policy.
  
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- StandingOnMyHead
  Posted on January 11, 2013 at 11:08am
  Companies have said they would like to be able to do that, but if the restaurant is owned by the same franchise company they can not because the employee’s aggregate hours are considered under the law. Unfortunately many restaurants are owned by the same company in smaller communities. These are the unintended consequences of government involvement when it comes to them setting policy.
  
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mikem1969
Posted on January 11, 2013 at 9:05am
Little hiler’s America, we the government are putting yall back in chains. Hey lib progressive morons, WE TOLD YOU SO.

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TEARS FOR AMERICA
Posted on January 11, 2013 at 8:14am
All while the federal government is looting our paychecks for more SS and we will never see a dime of it.

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- Justus39
  Posted on January 11, 2013 at 8:18am
  Yes they are. This is Obama’s way of making American’s more dependent upon government and encouraging them not to work. America has a Devil in the White House!
  
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cdowis
Posted on January 11, 2013 at 8:06am
It gets worse.

These employees will now be forced to buy their own individual insurance policy. The IRS hired 10,000 agents to make sure that they comply.

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- naughtycal
  Posted on January 11, 2013 at 8:26am
  The Federal Government has ruined this nation. It seriously time to think about Removing all powers short of coining our universal currency and defense from the federal government. Returning all powers to state legislation and let each create their own plan of entitlement for their citizens. Maybe even set rules that those who opt for state retirement entitlements be required to stay in the state inwhich they recieve their retirements. a SIMPLE 8% Va tax to support the military,and end to Congress and make the office of the presidency solely be used an international representative temp. position. Return liberty to this country.
  
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- raabhimself
  Posted on January 11, 2013 at 8:28am
  And I’m sure they (IRS) will be cutting their hours back to 28 as well…
  
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cdowis
Posted on January 11, 2013 at 8:01am
No problem. They will simply apply for SS with some phoney disability.

Out of work? Apply for disability.

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What the Heck
Posted on January 11, 2013 at 7:36am
Sad as it is to say for the workers, the dumb as democrats did this to their own “poor” and “middle class” which they can not define.
Stupid Dems can’t realize there is always a way around their stuff.
The Stupid Republicans are so afraid of speaking the truth and doing the hard thing, they have screwed us.
No doubt, most of them voted for Democrats and Obama and now they are getting their due.
Remember Romney wanted to repeal OBAMACARE. Care my butt.

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iltws2
Posted on January 11, 2013 at 5:44am
I bet both of these Employee’s voted Dumbocrat. Golly gee-wiz Batman what happened to my pay check. This is not right. We need to ask Odumbo to help. He will make those Rich Company’s pay!
Maybe he will make those greedy rich fast-food 1%’s give us the same pay just less hours. We are the
ninety-nine percenters you know. Obama, they are now taking more out of our check, Help-us PLEASE.

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Jerry Frey
Posted on January 11, 2013 at 4:56am
Decide for yourself – it’s easy: http://napoleonlive.info/what-i-think/obamacare-is-poison/

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Jerry Frey
Posted on January 11, 2013 at 4:55am
Decide for yourself – it’s easy. http://napoleonlive.info/what-i-think/obamacare-is-poison/

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Aeryn
Posted on January 11, 2013 at 3:58am
I have friends that own restaurants. Two do not take a paycheck because the profits are not such that they can be paid and work a full time job elsewhere while also putting in full time hours at their restaurants. The other takes a minimal paycheck when he can and his wife works as a waitress to get tips. He pays his staff at least minimum wage and gives them full time hours. He wants to open a second restaurant, but that would take him over the minimum 50 employees, so he will not. He would have created more jobs. His employees love working there and he has very little turnover. He does not have the profits for ObamaCare, he doesn’t even have insurance for himself and his family. He had a heart attack in the last year from stress and has to pay those bills now.

My sister owned a business for years, insurance for her and her husband runs $1400/mo. She sold her business a couple of years ago, financing it herself, so she was no longer working, just collecting the monthly payments from the new owners. She decided to go to work for Sam’s Wholesale so she could get insurance at a better rate. She was told employees didn’t get insurance until they work full time for 6 months. She has now been there 6 months & worked full time. She was told that it didn’t matter, no employee gets insurance until they have been there for 2 years. She is quitting.

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I am Jacks patriotism
Posted on January 11, 2013 at 2:23am
Obama will take the credit for the jobs created and the drop in the unemployment rate.

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I am Jacks patriotism
Posted on January 11, 2013 at 2:21am
I’m with you LMW, I knew that this would end up spreading part time jobs in place of full time positions. Now Obama will get to reward the masses that elected him, with jobs! It will become the new form of wealth for him to spread as sequestration, QE4ever, cuts, taxes and inflation render welfare payments obsolete. The new haves and have nots will be the employed and the unemployed, even if it is only 28 hours per week and to top it off Obama will take the credit for the jobs created and the drop in the unemployment rate.

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DEFCON4
Posted on January 11, 2013 at 2:12am
Obama-care meet your ‘new baby’,
I, coin it, “the keep your doors-open economy”
These chain-restaurants are just doing ‘what they can’
To-go’, day-to-day, $14.95 ,3-courses-no/*Drinks*, yikess…

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SacKings2312
Posted on January 11, 2013 at 2:09am
Schrader McDonalds of San Joaquin County

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I am Jacks patriotism
Posted on January 11, 2013 at 2:09am
I’m with you LMW, I knew that the spread of part time jobs would result. Just think of it as Obama’s gift to the masses that elected him. He is now going to spread the new form of wealth around, a job! Sequestration, cuts, or inflation will likely overwhelm welfare so the next true category of haves and have nots will be the employed and the unemployed, even if it is its 28 hours a week!

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merchantsailor
Posted on January 11, 2013 at 12:07am
All these Dumocrats that figured all this obummercare went to Harvard ya know. Guess what they make mucho money and they get to pick and choose their Cadillac plans on our dime. It all down hill from here unless there is a perpetual march on DC demanding a full resignation of all the “tenured” politicians. I believe that was tried before after World War I when the “boys” wanted their service pay early due to the depression but the powers that be had the Army under MacArthur ride roughshod over them. oh well. just sayin……..

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LMW
Posted on January 11, 2013 at 12:06am
I see it all now,this is the way Obama can say he saved the economy as now they will all have to hire extra people to fill in the gaps so he has created a new wave of hiring. Maybe a 100000 or more. What a man,he has kept his word and saved us all.

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