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CEO Frontline Report: More Pain for Workers due to ObamaCare!



As with any major government program, there are supporters and defenders for The Affordable Care Act, or ObamaCare.

This year has not been kind to ObamaCare supporters as all have lost in elections.  It looks to be equally gloomy for the Congressional mid-term election come Tuesday November 4.  Many supporters of The Affordable Care Act could be joining those Americans who have lost jobs or lost hours due to the requirements of ObamaCare.

There are many of those, according to Andrew Puzder.

Mr. Puzder is the Chief Executive Officer of CKE Restaurants.  That is the group that owns Carl’s Jr, and Hardee’s.  Restaurants like those employ many workers who are hourly employees.  Those are the ones most impacted by ObamaCare, according to Mr. Puzder’s piece in Forbes, “Take It from A Restaurant Executive: Obamacare is shifting workers into part-time jobs.”

In his Forbes piece, Mr. Puzder writes that, “In reality, Obamacare’s impact on involuntary part time employment should surprise no one.  In 1935, Congress passed the Fair Labor Standards Act mandating that employers pay non-management employees who work over 40 hours per week overtime pay.  This increased the cost of employees who work over 40 hours per week relative to those working 40 or fewer hours per week.  Businesses reacted rationally resulting in the 40 hour work week.  Obamacare has the same impact.”

He explains how The Affordable Care Act, “…mandates that employers offer employees working 30 or more hours per week health insurance coverage thereby increasing the cost of employees who work 30 or more hours per week relative to those working under 30 hours per week.  Businesses are rationally responding to this clear economic incentive by creating more part time jobs.  Make something less expensive and businesses will use more of it.  Make something more expensive and businesses will use less of it.  That was true with respect to the 40 hour work week and it’s true with respect to Obamacare’s 30 hour employer mandate cut off.”

“In reality” it is obvious that The Affordable Care Act is resulting in reduced hours for restaurant workers!



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