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January 14, 2013 Print
President Barack Obama

ObamaCare Hurts Businesses, Reduces Employees’ Hours

by Bethany Monk

Franchises of two well-known chains — Wendy’s and Taco Bell — have joined the list of businesses across the country facing the inevitable: They must reduce the hours of their full-time employees or face the impending costs of the new federal health care law, which may put some of them out of business.

ObamaCare, signed into law in March 2010, requires companies to offer government-approved health insurance to employees who work at least 30 hours or more a week. Businesses that choose not to comply face fines of up to $3,000 per employee.

About 100 employees at a Wendy’s in Omaha, Neb., will have their hours reduced to 28 a week, according to WOWT, a Nebraska ABC affiliate. A Taco Bell in Guthrie, Okla., is also cutting employees’ hours because of the new law.

“ObamaCare has proven to be a typical big-government attempt to ‘do something’ about a perceived problem by interfering with our free market system, which, predictably, ends up making the problem worse,” said Bruce Hausknecht, judicial analyst for CitizenLink.

ObamaCare is expensive and will harm the American economy, Hausknecht said.

“American businesses are quickly learning that the new health care law drives health costs up, not down as promised, and so they must either find a way to reduce their costs to stay profitable, or they must increase the price of the products and services they sell to the public,” Hausknecht explained. “And if the government won’t allow businesses to take the necessary steps to reduce their costs, then prices go up, inflation results, and the American economy suffers.”

Treadwell Enterprises in Missouri, which owns the Guthrie Taco Bell, told Omaha’s News 9 that most of its full-time managers and supervisors will maintain their full-time status.

“Treadwell Enterprises, like most businesses, is still researching what the Affordable Care Act means to our operations,” the company told News 9. “Regardless of the conclusion of our analysis, we will comply with this law, as we do all laws.”

The IRS has already taken steps in hopes to prevent companies from finding ways to avoid the new health care law.

In a recent proposal, the IRS cautions employers not to violate ObamaCare regulations by using temp agencies to avoid the health insurance mandate. The IRS said it will issue an “anti-abuse rule,” stating that businesses could be fined for not providing health insurance to temporary employees, even though these employees do not fall under the mandate’s jurisdiction.

In addition, businesses could be fined for hiring one employee for two part-time positions. 

Read the new regulatory proposal issued by the IRS.

Read Alliance Defending Freedom’s ObamaCare fact sheet.

Learn more about businesses facing layoffs due to ObamaCare.