Restaurant chain considering end run around health law

NewsGuard 100/100 Score

Darden Restaurants, whose companies include Olive Garden, is considering adding more part-time workers to avoid the insurance coverage mandate in the health law.

Politico Pro: Darden Tests Part-Timers To Avoid ACA
Warning of the looming cost of the Affordable Care Act, Darden Restaurants -- the parent company of Olive Garden, Red Lobster and LongHorn Steakhouse -- is experimenting with the use of more part-time workers to ease the sting of the law. The catch: They have to find out if they can shift people to part-time hours without forcing customers to suffer agonizingly long waits for their mezzaluna ravioli or seafood-stuffed flounder. But if the restaurant chain likes what it sees in the test -- and expands the use of part-timers throughout the country -- the law's critics are bound to cite Darden as proof that the health care law is forcing low-wage workers to lose hours and benefits (Cheney, 10/9).

The Associated Press: To Limit Health Care Costs, Olive Garden Parent Tests Keeping More Workers On Part-Time Status
Under the new health care law, companies with 50 or more workers could be hit with fines if they do not provide basic coverage for full-time workers and their dependents. Starting Jan. 1, 2014, those penalties and requirements could significantly boost labor costs for some companies, particularly in low-wage industries such as retail and hospitality, where most jobs don't come with health benefits. Darden, which operates more than 2,000 restaurants in the U.S. and Canada, employs about 180,000 people. The company says about 75 percent of its employees are currently part-timers (Choi, 10/9).

In other news, it's open season and workers are choosing plans --

Reuters: What To Expect When You Choose A Health Plan
Make way for open enrollment season, the time of year when those wordy benefits packages stuff your inboxes. Once again, workers face higher health care costs, but what else can employees expect from insurance plans? Tracy Watts, a partner with benefits giant Mercer, explains what's new for employees in 2013, including the impact of healthcare reform. ... While the main provisions of the new law won't go into effect until 2014, we've already seen companies expand coverage for dependents (Young, 10/9).


http://www.kaiserhealthnews.orgThis article was reprinted from kaiserhealthnews.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
Post a new comment
Post

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.

You might also like...
Neurological Narratives: A Journey into Women's Brain Health Research