Papa John's to Cut Workers' Hours over Obamacare

Papa John's to Cut Workers' Hours over Obamacare

John Schnatter, CEO of Papa John’s Pizza announced he will likely be forced to cut back workers’ hours because of the cost to businesses of the federal government’s takeover of our healthcare system.

Provisions of Obamacare state that employees that work 30 hours a week or more will be automatically considered full-time and must be included in their company’s healthcare insurance program. Currently, the eligibility threshold for health insurance is a 40-hour work week, so adding those who work 30 hours a week will cost businesses exponentially more. The higher cost associated with this change is forcing many businesses, especially those in the food service industry, to consider limiting workers to less than 30 hours a week.

In essence, implementation of Obamacare will cut the weekly take home pay of millions of low-wage workers by forcing companies to cut their hours.

Papa John’s isn’t the only company considering such cutbacks. Rusty Weiss has compiled a list of companies that have already announced layoffs due to Obamacare.

That list includes such companies as Kroger grocery stores, Darden Restaurants (the chain that runs such outlets as Red Lobster, Olive Garden, LongHorn Steakhouse and others), St. Jude Medical, Boston Scientific, medical device manufacturer Stryker, and many more.

There will  be more to come. As companies begin to realize the monumental costs that will be forced upon them due to Obamacare, fewer new jobs will be created, worker’s hours and pay will be cut, and it will be harder for entry level workers to transition from part-time to full-time workers as companies have to overcome this massive federal roadblock.