The 29-Hour Week

Update

January 9, 2013: Wendy is joining others with a 29-hour workweek to avoid ObamaCare.

WOWT-TV reports that nearly 300 employees at 11 Wendy’s locations in the Omaha area will have their hours reduced to 28 hours a week because the franchise owner says he can’t afford to pay his employees health care.

November 23, 2012: with regard to the Wal-Mart employee walk-out on Black Friday, there was one lone employee who walked out of his scheduled shift at a Wal-Mart on the south side of Chicago. He says he worked in the produce section, earning $8.95/hour, and recently had his hours cut to below 40 hours. Unfortunately for workers, I assume Wal-Mart will be looking for positions that can be cut to 29 hours so as not to incur ObamaCare expenses wherever possible. As for the Black Friday Wal-Mart walk-out, this, too, shall pass.

Original Post

Headline: Pennsylvania College Slashes Instructors' Hours to Avoid Obamacare

Pennsylvania's Community College of Allegheny County (CCAC) is slashing the hours of 400 adjunct instructors, support staff, and part-time instructors to dodge paying for Obamacare. 

"It's kind of a double whammy for us because we are facing a legal requirement [under the new law] to get health care and if the college is reducing our hours, we don't have the money to pay for it," said adjunct biology professor Adam Davis.

On Tuesday, CCAC employees were notified that Obamacare defines full-time employees as those working 30 hours or more per week and that on Dec. 31 temporary part-time employees will be cut back to 25 hours. The move will save an estimated $6 million. 

Million Dollar Way has blogged about this unintended consequence for some time. This was posted back in early October, 2012:

A referendum on ObamaCare and liberty. "Without an immediate course change, the health-care law will become irreversible." It's already irreversible. There are too many good things about it. Including the 29-hour workweek. If the 29-hour workweek is "legalized," folks can start earning overtime pay at 30 hours. What a great country. Even better than the French 35-hour workweek.

Obamacare defines full-time employees as those working 30 hours or more per week. Wow, this is absolutely nuts. The IRS will police the program; if folks don't purchase health care insurance, they will incur a tax penalty. And whether one is a highly paid, full-time employee, or a minimum wage, part-time employee, one will be required to obtain health care insurance. At least that's how I understand it. And companies are looking for ways to move full-time employees to part-time employee status to avoid the cost. 

A few days ago, an owner of several Denny's restaurants took some heat for doing this. Folks suggested the reason for ObamaCare was because of folks like him (owners of restaurants). I guess they can start adding university presidents.