Gucci Little Piggy

Kicking. Squealing.

Restaurant choking on ObamaCare

Pax Dickinson links to an article in the Orlando Sentinel about a company beta testing a plan to limit the number of hours worked by its employees in order to limit its exposure to ObamaCare.  That company is Darden Restaurants, who I work for, and which is also in tight with the Obama administration.  From the article:

In an emailed statement, Darden said staffing changes are “just one of the many things we are evaluating to help us address the cost implications health care reform will have on our business. There are still many unanswered questions regarding the health care regulations and we simply do not have enough information to make any decisions at this time.”

Analysts say many other companies, including the White Castle hamburger chain, are considering employing fewer full-timers because of key features of the Affordable Care Act scheduled to go into effect in 2014. Under that law,large companies must provide affordable health insuranceto employees working an average of at least 30 hours per week.

If they do not, the companies can face fines of up to $3,000 for each employee who then turns to an exchange — an online marketplace — for insurance.

“I think a lot of those employers, especially restaurants, are just going to ensure nobody gets scheduled more than 30 hours a week,” said Matthew Snook, partner with human-resources consulting company Mercer.

Darden said its goal at the test restaurants is to keep employees at 28 hours a week.

This would not impact me because I make it a rule to not work more than 27 hours at this job.  Truly, that is the actual number of hours that I’ve determined I can work in one given week at this job before teetering over into insanity.  I can’t deal with needy people for any longer than that.

But what is quite interesting about this is that Darden’s CEO Clarence Otis is (was?) a big-time Obama supporter.  He’s even paired up with Michelle Obama to encourage more healthy eating habits among young people.  But while Otis-Obama operate a superficial progressive campaign to limit the drag of obesity on the forthcoming health care initiative, the company is limiting the ability of workers to procure health insurance through them.

This could provide a golden opportunity for the Romney campaign if it wants to pursue a strategy of hitting ObamaCare.  The restaurant industry is one that many regular voters can understand.  They may not understand Solyndra or the cheating that occurs on Wall Street, but they’d understand what’s going on here with Darden and many other restaurants:  ObamaCare hurts their bottom line and causes them to limit the number of hours that an employee can work.  Companies don’t want to deal with a massive scale up in the number of full-time workers who are forced to purchase health insurance and who would naturally look to their employers for coverage.

Part of this is shaudenfreude, and part of it is disgust for my company which talks out of both sides of its mouth by touting progressive changes and its position on the Fortune 100 list for best companies to work for while also both cutting back on its employees ability to obtain their forced coverage and by slashing wages for bussers and bartenders, which I’ve noted was sold to employees at our restaurant as a Trojan Horse.  It was all “ah, this won’t really hurt anyone” even while it clearly had an impact.  From the Sentinel:

Darden has been aggressively keeping labor costs down. It has cut bartenders’ pay and required servers to share tips with them. It also has eliminated busboy positions at Red Lobster and reduced the number of servers working each shift at that chain.

Labor costs as a percentage of sales have dropped steadily from 33.1 percent in fiscal 2010 to 30.8 percent in the most recent quarter.

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15 Responses to Restaurant choking on ObamaCare

  1. anonymous 10/08/2012 at 12:53 pm

    sounds like they are swallowing it just fine

  2. Scott 10/08/2012 at 1:14 pm

    Every server I personally know is a democrat who cheats on their taxes (servers, all of your tips are taxable) so them getting hit doesn’t fill me with a lot of sympathy.

  3. Ulysses 10/08/2012 at 1:21 pm

    Bigger businesses, like Walmart, are more supportive of such measures because they can afford to side-step them while smaller competitors get ensnared.

  4. Camlost 10/08/2012 at 1:37 pm

    Why does Clarence Otis even bother? As a high-profile Democratic supporter he will just get a waiver from Obamacare:

    http://www.theblaze.com/stories/how-many-businesses-are-exempt-the-final-number-of-obamacare-waivers-is-in/

    They’ve been handing out Obamacare waivers like so many cheap garage sale flyers.

  5. Red 10/08/2012 at 4:23 pm

    Obama care is designed to cash the US healthcare system to finally force a full government run healthcare. In the long run, every business in american wants this. They just have to create the crisis to make sure it happens.

  6. nick digger 10/08/2012 at 5:15 pm

    No problem here. Servers will just spread word around that the new acceptable tip rate is 40%; if you pay 1% less, then you’re a cheap MFer who is attempting to starve small children.

  7. PA 10/08/2012 at 6:09 pm

    i hope to one day test my theory that if i encounter a famous celebrity in a casual situation that i will not give one flying fuck

    I saw Ann Coulter in a hotel lobby seven or eight years ago. One hundred percent certainty it was her, without going into reasons for it here. Shrugged it off.

    By they way, she was hot in person.

  8. PA 10/08/2012 at 6:11 pm

    An acquaintance of mine saw Justin Timberlake once. Walked up and said “hi” to him. Timberlake told him “fuck off.” LOL.

  9. PA 10/08/2012 at 6:15 pm

    Servers will just spread word around that the new acceptable tip rate is 40%; if you pay 1% less, then you’re a cheap MFer who is attempting to starve small children.

    Black patrons hit hardest. Oh wait, they’re not.

  10. PA 10/08/2012 at 6:27 pm

    If Ferd still had his blog he’d certainly have lauded this decleration of war by the youth of France.. (h/t Thrasymachus)

  11. PA 10/08/2012 at 6:31 pm

    “We are the generation who gets killed for glancing at the wrong person.”

    “Our generation are the victims of the May ’68′ers who wanted to liberate themselves.”

  12. njartist49 10/09/2012 at 6:03 am

    How odd: The powers that be keep saying that the Protocols of the Elders of Zion is a fake; yet, here is the fulfillment of one of their plans: to have most of the Gentile dogs working as contingents which means part-time. Part-time work is even called contingent; for example: “The contingent workforce – working folks who don’t have a traditional full-time job – increased by over 700,000 in September. This is why the unemployment rate fell.”(http://www.smallbizlabs.com)
    And the thing is I am not an anti-Zionist. Yet.

  13. Pingback: Intended Consequences of ObamaCare « Gucci Little Piggy

  14. loser 10/14/2012 at 8:57 am

    The problem with Romney pointing out the flaws of an evil society is that this society is the sum of frequently idiotic citizens.

  15. Pingback: The Obamacare Cliff « Gucci Little Piggy

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