Obama Care Making Parents Hours Go Down?

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  • Country Kids
    Nature Lover
    • Mar 2011
    • 5051

    Obama Care Making Parents Hours Go Down?

    About a month ago, I had a parent that pretty went from 5 days a week to two days a week where they work because of Obama Care. Another person said that at their work they were losing 10 hours a week due to Obama Care.

    Are employers cutting hours so they don't have to provide insurance? That just is very wrong if that is the case. Lets get more people on the system then!

    Whats funny though is minumum wage is being raised here and now the highest in the nation. So I'm sure that will cause more layoffs for people.

    I'm ready to get off the merry go round-
    Each day is a fresh start
    Never look back on regrets
    Live life to the fullest
    We only get one shot at this!!
  • itlw8
    Daycare.com Member
    • Jan 2012
    • 2199

    #2
    not uncommon if they work 35 hours of more they are f/t .Places that have ins for some are good at doing that. Walmart, Steak and Shake,McDonalds. most fast food,

    Now if they have more than 50 employees they HAVE to provide ins for f/t it will happen to more and more people.
    It:: will wait

    Comment

    • familyschoolcare
      Advanced Daycare.com Member
      • Jun 2011
      • 1284

      #3
      The only way to solve this is to make it cheaper thus cost effective to hire one full time employee over two partime employees. Companies where already doing this to some degree and from a business point of view can you blame them. If you have two people that usually work 20 hours each or one that works 40 you get 40 hours of work done for you but by dividing it into two people you do not have to pay ins. You don't have to over time when you have more than 40 hours of work to be done.

      I am no saying this is fair, just that it will take a while and several more laws before the full spirit of Obama care will be taking place in this country. It is a start.

      Comment

      • Willow
        Advanced Daycare.com Member
        • May 2012
        • 2683

        #4
        I'm sorry to say, but I don't blame them.

        I would probably do the same if I were being forced to pay for something I didn't want and was expected to eat the new expense myself.

        Comment

        • Scout
          Daycare.com Member
          • Aug 2012
          • 1774

          #5
          I think if it's a small company that it's not totally impossible that they are using Obama Care as a scapegoat to cut costs. I mean, who wouldn't want to look like the bad guy? Sad thing is that we will not know for sure. Lots of companies cut hours each year prior to this also. Where I used to work every winter we would get hours cut, EVEN IF YOU WERE F/T. F/T was considered 35 hrs per week as PP said so we would sometimes lose 5 hours. Companies are always going to look for ways to save money. It is good business. I hope they are able to work with the new situation or find something more suitable since I have BTDT!

          Comment

          • Country Kids
            Nature Lover
            • Mar 2011
            • 5051

            #6
            No both people work for large global restaurant chains.

            Whats funny is they are having to pay out more hourly wise for two people then for just one. Its costing them double to pay two people to work a few hours then pay one to work full time. So in the long run its probably costing them more then they realize.
            Each day is a fresh start
            Never look back on regrets
            Live life to the fullest
            We only get one shot at this!!

            Comment

            • Play Care
              Daycare.com Member
              • Dec 2012
              • 6642

              #7
              Originally posted by Country Kids
              No both people work for large global restaurant chains.

              Whats funny is they are having to pay out more hourly wise for two people then for just one. Its costing them double to pay two people to work a few hours then pay one to work full time. So in the long run its probably costing them more then they realize.
              Eh, service and hospitality industry are notorious for cutting hours or keeping people's hours just below where they would have to pay insurance. I blame greed.

              Comment

              • seebachers
                Mostly lurking member
                • Jan 2012
                • 118

                #8
                no, it costs them much more to pay the one person with full time benefits than it does to pay two part timers with no benefits.

                Comment

                • Country Kids
                  Nature Lover
                  • Mar 2011
                  • 5051

                  #9
                  Originally posted by seebachers
                  no, it costs them much more to pay the one person with full time benefits than it does to pay two part timers with no benefits.

                  Well our minimum wage is right at $9.00 an hour if not a little higher. So for those two part-timers they are paying $18.00 an hour insteade of the $9.00 an hour for the full-timer. I know the insurance costs but I bet in the long run it actually ends of being even if not more for the part-timers because of the $ amount per hour.
                  Each day is a fresh start
                  Never look back on regrets
                  Live life to the fullest
                  We only get one shot at this!!

                  Comment

                  • DCMom
                    Advanced Daycare.com Member
                    • Jul 2008
                    • 871

                    #10
                    I'm confused, how does it cost $18/hr?
                    If you pay Employee A from 8-12:30 then employee B from 12:30-5 they each are paid $9/hr for the hours they work during the day.
                    I used to job share at my former job and keeping the overhead costs down was the reason they did it that way.

                    Comment

                    • Country Kids
                      Nature Lover
                      • Mar 2011
                      • 5051

                      #11
                      Originally posted by DCMom
                      I'm confused, how does it cost $18/hr?
                      If you pay Employee A from 8-12:30 then employee B from 12:30-5 they each are paid $9/hr for the hours they work during the day.
                      I used to job share at my former job and keeping the overhead costs down was the reason they did it that way.
                      Because you aren't going to have just one part-time person working at a time. Usually you will have 1 full-time person and a couple part-timers or all part-time people. If you cut some of those part-time postitions and made them full-time your cost goes down. If you took two part-time positions and made it into one full-time you are saving.
                      Each day is a fresh start
                      Never look back on regrets
                      Live life to the fullest
                      We only get one shot at this!!

                      Comment

                      • small_steps
                        Daycare.com Member
                        • Oct 2011
                        • 489

                        #12
                        Originally posted by Country Kids
                        Because you aren't going to have just one part-time person working at a time. Usually you will have 1 full-time person and a couple part-timers or all part-time people. If you cut some of those part-time postitions and made them full-time your cost goes down. If you took two part-time positions and made it into one full-time you are saving.
                        I'm still confused. Maybe I'm having one of my blonde moments but I'm with the previous poster, I would think it would turn out the same as far as hourly pay goes

                        Comment

                        • seebachers
                          Mostly lurking member
                          • Jan 2012
                          • 118

                          #13
                          It is still $9.00 per hour for each employee (not $18 an hour total).....hiring 2 employees for the same 40 hours to be split. Each employee gets only 20 hours and no benefits. $9.00 x 20 = $180 per one employee and $180 for the other for a total of $360.00 for a 40 hour work week totaled together. Not per person.

                          On average, it cost 20% - 28% on top of the base salary to employ a person full time. So that would be $9.00 x 40 = $360 per hour in just wages and another (360*20% = $72) $72 a week for the benefits to pay him. That makes it an extra $288 a month that the employer has to pay to have the full timer. That is why it is more cost effective for a company to hire two part timers WITHOUT benefits.

                          Not saying that I believe that it is right, but I can see when make cost savings a priority that is why companies go that way.

                          Comment

                          • safechner
                            Daycare.com Member
                            • Jan 2010
                            • 753

                            #14
                            I am not surprised about this. My husband's job is doing the same thing but they laid people off, not cutting hours because they told everyone that they are facing to pay higher taxes because of Obama about two months ago.

                            I don't blame on them but I do believe US citizens will be suffering when they will keep lay them off or cutting hours soon. In fact, we are going face to pay more taxes this year (Bush's tax cuts expired), which I am not looking forward to it! Most people don't realized they voted Obama.

                            I actually dont agree with Obama care because I felt it is not right thing to do force people to have Obama care and they have to pay taxes if they don't have insurance benefits. I have heard some people are glad to have Obama care but they do not know the whole story yet. I know it won't effect until 2014.

                            That is why I don't vote Obama.

                            Comment

                            • Blackcat31
                              • Oct 2010
                              • 36124

                              #15
                              Here is a great article (short) that explains why Obamacare incentivizes part time jobs.

                              Since the election, several large employers – ranging from restaurants and fast-food establishments to colleges that rely on part-time instructors – with lots of part-time employees have announced plans to limit their employees to 25 hours per week in response to Obamacare. While they've taken a lot of criticism for [...]

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