Wal-Mart is famous for saving money by working employees to the brink of full-time status, only to reach the cutoff so the corporate behemoth doesn’t have to pay full-time salary and benefit packages.
Health care and 401K sharing plans are considerable costs to a business’ bottom line.
No matter who you believe on ObamaCare and how many businesses will drop insurance for their employees – many companies have already switched to health savings accounts, which save the company money and make better fiscal sense for particularly young employees – there’s a hidden cost: full-time employment.
How many businesses will take the Wal-Mart tact in trying to keep costs down? Major media companies have already become dependent on
cheap free labor from college students and free-lancers.
Some food chains are shifting employees from full-time to part-time to avoid potential new fees and costs under ObamaCare – not to mention, economic growth remains sluggish.
How many companies will follow suit? It’s impossible to know, but it seems likely that people with borderline full-time jobs or jobs with flexible hours can expect to see these changes sooner rather than later.
Full-time service employees are the most likely to see their jobs cut down. A company can save tens of thousands of dollars in health care costs just from one employee. That means retail, food service, labor and other blue collar jobs that had been full-time can expect to be taken down a peg thanks to ObamaCare and tepid economic growth (thanks in no small part to ObamaCare itself).
Pro-business organizations across the country have expressed deep and unrelenting fear about the potential impacts of ObamaCare on their business, including lefty organizations in left-leaning D.C. in a recent slew of letters.
Of course, progressives don’t care because they are fine with more people being covered under Medicaid or COBRA, but that will skyrocket the costs of ObamaCare and drive up government spending, while also drive up medical costs for the insured, not to mention bring down real income for the average American.
In typical progressivist style, the outcome (ObamaCare) was the only thing the left sees when they support this policy. They don’t see the hidden costs to millions of employees and businesses who have to live under the conditions its creates.