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Obamacare and Restaurants-No Overtime for You ??

The following is a result of observing my 19 year old daughter deal with work place challenges and dealing with her educational needs.  She failed out of her first year of college. Within a couple of months of working solely at a neighborhood fast food burger chain, she has renewed her aspirations towards returning to school, and to eventually teaching Latin.  She has already paid off her first student loan from this minimum wage job.  I’ve passed on my scepticism of college after being heavily influenced of the pros and cons of a university education. We are both college graduate parents, have placed a bigger emphasis on avoiding debt and saving money as being high priorities, but finding training in college that will train for future work.

Why is management at my daughter’s restaurant not allowing overtime? Daughter says workers are scared to death of speaking up about staying an extra hour for when the next shift is scheduled to come on. They won’t be paid overtime, according to recent warnings from the managers. My daughter is highly efficient and organized to a fault compared to her peers. She was getting 47 hours.  Now she is working two different jobs.

I couldn’t but noticed two related articles. One from IBDs October 11  front page which noted that large chain restaurants are moving many to part time work so that the workers don’t cross the Obamacare definition of full time work of 35 hours per week.  By not paying for insurance for their workers, workers must pay for their own or pay the penalty?.  This looks like experimentation on the major chain restaurants’ part. http://news.investors.com/ibd-editorials-perspective/101112-629082-obamacare-threatens-minority-hiring-restaurants.htm?p=full as well as Mish Shedlock’s Global Economic Trends link to a October 9th story in CNBC on October 10th.

The NFP made no sense, unless, hypothetically, about 800k workers, whether previously unemployed or not, went out and got part time work.  As far as the general employment picture is concerned, any work would have to either be independent contract work or two part time jobs, because there is no room for overtime under Obamacare, yes?

This the first time in a while that I’ve reflected on the Obamacare impact. Thanks to the restaurant practices and the articles above, I’ve concluded that any transition will exclude overtime work as a way to contain costs for employers, who would have to think that people without overtime prove that an employer doesn’t full time workers, and hence is excluded from paying their healthcare bill.  Planning on my personal additional $70 towards health insurance needs has been my guesstimate on my cost along with other deductions. (Please clear up my thinking if you have a more educated estimate for this deduction, to get my so called free health care).

 

 

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