Obamacare opponents warned that forcing companies employing 50 or more full-time workers to buy healthcare would prompt employers to slash jobs and worker hours. And that’s exactly what’s happening,says one of President Barack Obama’s favorite economists, Mark Zandi of Moody’s Analytics.
“It will have a negative impact on job creation” this year, says Mr. Zandi.
The Obamacare employer mandate doesn’t go into effect until January 1, 2014, but the government requires businesses to track worker schedules for three to 12 months in advance. That means many employers plan to get a jump start on avoiding Obamacare’s $2,000 per-worker fine by firing workers now, reducing employee hours, or replacing full-time employees with part-time workers.
A survey by the International Franchise Association finds that 31% of franchisees say they plan to cut staff to duck under Obamacare’s 50-employer mandate. And another study byMercer consulting firm found that half of businesses who don’t presently offer health insurance plan to reduce employee hours to avert triggering Obamacare’s penalties.
keyboard shortcuts: V vote up article J next comment K previous comment