Some small business employees could see a serious reduction in their work hours soon, as an interesting side effect of Obamacare is developing.
"We have seen some employers that are right on the cusp of being a large employer or a small employer, talk about hiring part-time employees instead of full-time employees," said Dale Randall, Chief Operating Officer with IBC Insurance. "But it's a complicated issue that they have to work through to decide if that's going to help."
Randall told 550 KTSA News this is most likely due to the fact that they won't have to provide health insurance of employee benefits to their part-time employees under The Affordable Care Act.
"The law still does not require that you offer health insurance to part-time employees," said Randall. "So, you may be subject to a fine, but you still do not have to offer health insurance or employee benefits to them."
Some employers have already taken to cutting their full-time employees hours down to part-time, while others are simply hiring more part-time positions to push them into a large business category.
"Hiring part-time instead of full-time employees has an effect on our economy, because people are underemployed at that point in time," said Randall. "But it can have a huge effect on an employer if they think they are doing the right thing, and then all of the sudden they find out a year down the road that they have a $40,000 to $50,000 fine."
By: Marissa A. Wagner
Tuesday, April 9, 2013