Part time workers could lose hours due to Affordable Health Care - Action News 5 - Memphis, Tennessee

Part time workers could lose hours due to Affordable Health Care act

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MEMPHIS, TN -
(WMC-TV) - The Affordable Health Care act won't be in place until next year, but part time workers could start seeing their hours cut long before then.

As part of President Obama's affordable healthcare act, part time workers must work less than 30 hours a week or companies will have to provide healthcare insurance. 

"It's going to be interesting to see how businesses are going to respond to this," said labor attorney Alan Crone. 

The law doesn't go into effect until next year, but employers have to start cutting hours soon to establish a work history.

"The hard part is going to be moving part time workers to full time now," said Danver's restaurant owner John Golon. 

80 percent of his workforce is part time. 

"We're not going to cut their hours just to save a little bit of money then have our guests suffer because they don't get good service anymore," said Golon. 

So Golon will have to consider creating more full time jobs.

The added cost of health insurance, is an expense that could cost him a 47 year old family business. 

"Adds about $250,000 to annual costs, which, that's more than I made last year," said Golon. 

It's impossible to predict what strategy each company will use to balance their books.  And whether part time workers will lose money, or gain full time employment.

"A year from now, two years from now, we may know the answer to it - but there could be some tough times between now and then for part time workers," said Crone. 
  
The upside to this is employers may start hiring more part time workers to make up for the hours they have to cut from others.

Which could mean more jobs. 

But again, it's a mathematical mystery that each company will have to sort out.  

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