State and Local Governments Cutting Work Hours Due to Obamacare

The ObamaCare law (PPACA) has set the definition of "Full Time" at 30 hours per week average using some kind of formula.

The law also requires employers with more than 50 "Full Time" employees to "Provide" health insurance polices for "Full Time" employees, or pay a fine (the requirement may have been delayed until Jan 2015).

Employers may provide insurance to part time employees but are not required by law.

It seems many employers are cutting hours to get around the requirements.

These employers are not just limited to private companies. Governments are also included in the laws.

This article points out some examples of State and Local governments that are cutting hours down to part time and thus forcing employees onto the insurance exchanges.

The financial implications could be devastating because people are also required by law to have insurance starting Jan 2014.

Sure many will be eligible for subsidies and tax credits, but can they afford the high deductibles and the apparent reduction in pay ?

The whole thing is a dilemma by law.

And employers may have other reasons to cut hours, but many are saying the law is one reason.

Here are a few state and local governments taking action because of Obamacare:

Indiana’s state government cut hours for part-time and temporary employees from a maximum of 37.5 hours per week to fewer than 30.

Georgia’s Fulton County is cutting a number of employees to fewer than 30 hours per week.

Delaware’s state government is cutting hourly and seasonal employees to a maximum of 29.75 hours per week.
Alabama’s Huston County is cutting hours of part-time employees to fewer than 30 per week.

Heritage’s Alyene Senger warned that Obamacare “creates an incentive for businesses to avoid both the penalty and cost of coverage by hiring part-time employees instead of full-time employees, since businesses will not be penalized for failing to provide health insurance to part-time employees.”

State and Local Governments Cutting Work Hours Due to Obamacare


Expanded story with supporting links ...

In the interest of an informed debate, we've compiled a list of job actions with strong proof that ObamaCare's employer mandate is behind cuts to work hours or staffing levels. As of Nov. 5, our ObamaCare scorecard included 363 employers with more than 100 school districts among them. Here's our latest analysis, highlighting ObamaCare's downside for low-wage workers. Recently, we examined Indiana's 10th Amendment challenge to the employer mandate. IBD also explained why the employer mandate will undercut the goals of ObamaCare — affordable, reliable coverage — even in cases when employers don't cut work hours. The ObamaCare list methodology is explained further in our initial coverage; click on the employer names in the list below for links to supporting records, mostly news accounts or official documents.

ObamaCare Employer Mandate: A List Of Cuts To Work Hours, Jobs

Any first hand info from ATS members ?

reply to post by xuenchen


Sounds like an overall win for the administration and State govts.

Existing employees hours cut, paid less.
Hire another employee, paid lower hours but still boosts employment rate.
Overall cheaper for States.
Will inevitably force more onto govt. assistance, boosting voter base for admin.
Forces more people to enroll in ACA.

watchitburn
reply to post by xuenchen

 

Sounds like an overall win for the administration and State govts.

Existing employees hours cut, paid less.
Hire another employee, paid lower hours but still boosts employment rate.
Overall cheaper for States.
Will inevitably force more onto govt. assistance, boosting voter base for admin.
Forces more people to enroll in ACA.

Yeah, the Government wants to cut people's income and thereby cut government revenues.

Follow the money - who really gains from cutting hours? Big Business maybe?

reply to post by FyreByrd

Yeah, the Government wants to cut people's income and thereby cut government revenues.

Follow the money - who really gains from cutting hours? Big Business maybe?

But if they add more part time, the revenues stay the same.

Total hours may not be changing.

I don't see how business can be blamed for this.

This law/tax was designed to be unaffordable. It was designed to create a way for business to fail. It was designed to create a greater dependence on government.

This law, this tax was just meant to take away freedoms and liberties.

*golf clap*

Well played, Chairman ObaMao, well played.

I work for a city government, and this is exactly what they are doing. Current employees at 40 and 20 hours a week keep basic benefits, but insurance is cut to spouses and children of 40 hour employees (20 hours didn't have this option before). 40 hour jobs aren't changing, but when 20 hour jobs are refilled, they automatically drop to 18 hours a week, so they lose all benefits. On top of that, most everything is paid horribly (Master degree level jobs get maybe $40k a year, but hourly paid employees make just above minimum wage). Its a wonderful system from a business perspective, but horrible if you want your employees to think you actually care about them.

I honestly can't see this changing too much any time soon, with most businesses (whether government or private).

I have even heard a rumor that this may effect school teachers. There is some talk about cutting school to 4 days a week instead of the 5 days. May sound good to kids until they hear about the second part which if they cut school to 4 days a week then school will then be year round. I do not think this will happen because the math just does not work but when has that stopped some crazy fool from trying something.