The owner of a Wendy’s franchise in Omaha, Neb. plans to cut 300 employees’ hours to part-time in order to avoid providing them with health care coverage under the Affordable Health Care Act, Think Progressive reported on Monday, Jan. 7.
By cutting employees to part-time hours, the Omaha Wendy’s franchise would avoid paying for employee health benefits, shifting the cost of insurance coverage onto the 300 employees under the Affordable Health Care Act.
“The company [Omaha, Neb. Wendy’s franchise] has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, vice president of operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance.”
The owner of an Olive Garden franchise and the owner of a Red Lobster franchise admitted to anti-Affordable Health Care Act campaigns hurt more than they helped. This fall Denny’s corporate office was quick to distance itself from a Denny’s franchisee’s similar attempt to avoid paying for employee health benefits under the Affordable Health Care Act. Darden Restaurants experienced a 37 percent drop in profits after threatening to cut employees to part-time hours.
Wendy’s corporate offices have not yet issued a response to Gary Burdette’s cost-cutting measures.
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