Saturday, October 26, 2013

ObamaCare Myths & Truths: Employer Mandate's Impact On Jobs, Hours -

Here's the problem: Walmart, Target, Trader Joe's, Whole Foods and other low margin low wage operations want to keep wages and costs low.  The employer mandate (employers of 50 or more must provide health insurance for full-time workers) have an incentive to cut hours below 30 to avoid the cost.  - GWC
ObamaCare Myths & Truths: Employer Mandate's Impact On Jobs, Hours - by Jed Graham
"In short, there is nothing anyone on the right or the left should like about the employer mandate as it now stands. So what should be done about it? The one fix on the table is to change the definition of full-time to 40 hours, but that may not be workable. Many millions of workers could see hours capped at 39-hour weeks and get shifted to the exchanges. My idea focuses on helping the low-wage workers who are getting hurt and reduces the incentive to cap hours without taking employers completely off the hook. I propose eliminating the employer mandate for wages below $10 an hour and gradually phasing in the penalties so they only apply in full at $20 an hour. Only employees earning at least $20 per hour would count when it comes to determining whether an employer offers coverage to 95% of full-time workers. (Failure to offer coverage to 95% exposes an employer to a $2,000 penalty per full-time-equivalent worker instead of just $3,000 per full-time worker who accesses exchange subsidies.)"
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