Restaurant companies are limiting employee hours to avoid
healthcare costs as called for in Obamacare. But some believe
companies and their CEOs may be using the healthcare law as an
excuse to do that.
This fall, after an Associated Press story about Red Lobster and Olive Garden limiting hours
was posted on OneNewsNow, one reader posted a comment saying that
restaurants had been limiting hours long before the healthcare law
started as a bill.
Holly Wade, senior policy analyst of the National Federation of
Independent Business, an organization that has been critical of
the new healthcare law, says businesses are legitimately
"I think there are a lot of businesses out there looking to see
how the new healthcare law is going to affect their cost hurdles
and how much they're going to have to pay in providing health
insurance," she tells OneNewsNow.
"The law is very complicated when it comes to part-time and
part-time equivalence and what the penalties are with the tax
Wade adds that the final regulations are still pending.
"So there is a lot of uncertainty regarding health insurance and
how it's going to affect people's business," she says. "They're
struggling to try and figure out what's best for them, especially
in a down economy when sales is one of the biggest problems -- and
having to face this is certainly is not helpful."
Since the announcement involving Red Lobster and Olive Garden,
the CEO of Papa John's has stated that his employees may
face reduced hours because of ObamaCare. Meanwhile, an Applebee's franchisee in New York says that he
may have to fire people, and the owner of multiple Denny's locations in the
Southeast intends to add a five-percent surcharge to customers'
bills to offset costs, beginning in January 2014 when the
healthcare law is fully implemented.