BAKERSFIELD, CA - The Affordable Care Act, sometimes called Obamacare, will affect businesses nationwide. Here in Bakersfield, some part-time employees are already seeing changes.
North of the River Recreation and Park District representatives say they'll cut the hours of 12 part time employees as of next Monday in preparation for a provision of the Affordable Care Act. Under the new provision, employees who work at least 30 hours a week are classified as full-time and entitled to employer provided health insurance benefits.
NOR marketing director Lisa Plank said, "It's an enormous expense, what we're talking about. Whether it's on the employee end and what they have to pay and what we have to cover, but to switch things and move everybody to a full time employment status is cost prohibitive for a number of businesses, not just this business."
A recent poll by the Minneapolis Federal Reserve indicated 4% of employers have shifted to more part time employees to compensate for the provision, while 7% say they plan to make an adjustment. The remaining 89% say they have not made a scheduling change and don't intend to.
NOR representatives say the changes are necessary to compensate for the potential cost of the new provision.
"I don't think it has to do with ethics, it has to do with affordability. It has to do with keeping our employees and meeting the standards. We don't get to make an ethical decision. We've been told this is what has to happen, there are fines," said Plank.
Businesses with 50 or more employees will be fined $2,000 per violation if they don't provide insurance to full time workers.
Some well-known national companies including Papa John's, Red Lobster, and Olive Garden have announced plans to keep employees under the 30 hour a week mark.
North of the River Recreation and Park District representatives say they'll cut the hours of 12 part time employees as of next Monday in preparation for a provision of the Affordable Care Act. Under the new provision, employees who work at least 30 hours a week are classified as full-time and entitled to employer provided health insurance benefits.
NOR marketing director Lisa Plank said, "It's an enormous expense, what we're talking about. Whether it's on the employee end and what they have to pay and what we have to cover, but to switch things and move everybody to a full time employment status is cost prohibitive for a number of businesses, not just this business."
A recent poll by the Minneapolis Federal Reserve indicated 4% of employers have shifted to more part time employees to compensate for the provision, while 7% say they plan to make an adjustment. The remaining 89% say they have not made a scheduling change and don't intend to.
NOR representatives say the changes are necessary to compensate for the potential cost of the new provision.
"I don't think it has to do with ethics, it has to do with affordability. It has to do with keeping our employees and meeting the standards. We don't get to make an ethical decision. We've been told this is what has to happen, there are fines," said Plank.
Businesses with 50 or more employees will be fined $2,000 per violation if they don't provide insurance to full time workers.
Some well-known national companies including Papa John's, Red Lobster, and Olive Garden have announced plans to keep employees under the 30 hour a week mark.