It’s not just medical device firms that are cutting jobs due to Obamacare. Many small businesses are cutting employees’ hours to less than 30 hours per week, and some states are doing the same.
Obamacare requires businesses with over 50 full-time employees to provide health insurance or to pay a fine. To avoid these costs, many businesses are turning full-time employees back to part-time. A Wendy’s franchisee is cutting 100 employees to 28 hours per week. A Taco Bell and Papa John’s are also limiting workers to 28 hours.
It’s not just small businesses. Governments and universities are cutting back on some employees’ hours. The State of Virginia in an attempt to save $110 million is limiting the hours of thousands of part-time employees.
Ohio’s Youngstown State University is limiting adjunct professors’ hours. The Community College of Allegheny County is cutting 400 employees down to 28 hours in a move to save $6 million. Stark State College, in Ohio is similarly cutting adjuncts to 29 hours.
Too many politicians fail to understand that the law of Unintended Consequences cannot be repealed.
UPDATE: The Obamacare mandates are already reducing full-time employment. The insurance mandate is so onerous for small firms that “Many stores will have to cut worker hours out of necessity. It could be the difference between staying in business or going out of business.”