Driving home from work today, a poster-sized sign caught my eye.
It read: “I’m an Obama 29er”
Obviously some kind of political statement. Related to ObamaCare? Must investigate!
According to WSJ.com:
…federal employment regulations kick in when a firm crosses the 50 worker threshold, employers are starting to cap payrolls at 49 full-time workers…Businesses that hire young and lower-skilled workers are also starting to put a ceiling on the work week of below 30 hours. These firms are the new ’29ers.’
A natural consequence of ObamaCare regulations, full-time employment is going to take a major hit.
Why you ask? Lets do the math…
Businesses that hire at least 50 workers are now mandated, under ObamaCare guidelines, to provide medical coverage to all of their employees that log at least 30 hours per week.
Consequently, small businesses that hire 50 or more workers at 30 hours a week without providing health coverage take a $2,000 per employee hit (that’s the tax, or penalty, you’ve heard so much about.)
So what’s gonna happen?
In many cases, most small businesses are going to do less with more or simply become more creative with their hiring practices (by keeping their overall workforce under 50 and under 30 hours a week per employee, whenever feasible).
By doing this, they’ll be maximizing savings, maintaining productivity, and essentially screwing over the government.
For the small businesses that can exercise such mandate manipulations, it probably sounds like the perfect plan.
Meanwhile, not only are many employees not getting the hours they need to pay their bills; they are also not getting the much ballyhooed healthcare they’ve been promised.
The moral of the story? No matter what the regulation – there’s always a loophole.
Maybe it’s time we stop looking to government to fix the problems they’ve created and often exasperated…..
For once – lets give this idea a try!