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Alison Doyle

Companies Cutting Jobs Because of Obamacare

By November 11, 2012

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FiredThere are reports that companies are cutting jobs because of Obamacare. Republican Speaker of the House John Boehner tweeted that: @SpeakerBoehner ObamaCare is law of the land, but it is raising costs & threatening jobs. Our goal has been, and will remain,#fullrepeal.

It is really going to happen on a large scale or is it simply more partisan politics? The lists of companies I found that are reportedly cutting jobs were all on conservative leaning websites and blogs - and on left leaning websites, blogs and Facebook pages pushing back against the reported job cuts.  A restaurant chain that is mentioned often is testing boosting the number of part-time workers at a few locations, not eliminating jobs.

Forbes reported earlier this year that the nonpartisan Urban Institute studied what happened in Massachusetts, under Governor Romney, when health care reform was enacted. The study found no evidence that mandated healthcare coverage cost jobs. The Huffington Post reports:  "A survey of small business owners in October found that few would take drastic steps in response to the health care law. Instead, many said they would simply trim health care benefits."

There's already a backlash on Facebook and Twitter suggesting people boycott restaurants and other companies that do plan on cutting jobs. So, the reports of job cuts, if they are not accurate, may come back to haunt the companies that are reportedly laying off workers. Another thing to keep in mind is that many of the restaurants on the list of those cutting jobs typically have a large contingent of part-time workers anyway.

It's not all companies that are cutting jobs. In fact, the Deseret News reports that Utah's Governor's Office of Economic Development announced that hundreds of new jobs are coming to Utah. Also from Utah, KSL.com reports that, according to economists, the rumors of layoff are unfounded and companies that are laying off were already planning to do so.

About.com Guide to US Economy Kimberly Amadeo says "Obama's win boosts the economy for three key reasons... First, no matter who won, the removal of a large level of uncertainty allows businesses to move forward with any expansion and hiring plans." Here's more on how an Obama win impacts the economy.

In my opinion, companies are going to hire the workers they need to keep their business running. They may opt for more part-time workers, but, as I mentioned, most major retail and hospitality employers already have a large part-time workforce, many of whom aren't eligible for benefits anyway. These sectors of the job market also have the highest turnover, so employers are constantly rehiring.

Share Your Opinion: What do you think? Are there going to be significant job cuts because of Obamcare?  Let me know what you think in the "Comments" section below this post.

Share Your Story: Has your boss fired workers as a result of President Obama's reelection? The Huffington Post would like to know. Email Jillian.Berman@huffingtonpost.com and tell her about it. It will be interesting to see how this pans out and how many jobs are really cut because of this election.

Read More: Will Obamacare Kill Jobs (Forbes) | Internet rumors of massive job layoffs unfounded (KSL.com)

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Image Copyright Natalia Siverina

Comments
November 11, 2012 at 7:38 pm
(1) John M. says:

I think that for any company that wants to be profitable it’s going to be business as usual. Employers are going to hire they workers they need to keep the company running efficiently. And that has nothing to do politics.

November 12, 2012 at 1:00 am
(2) Morgan Mghee says:

Interestingly, I opened a tab and did my own little search ‘companies cutting jobs election’ and found the same general results as your opening statement. I see the machine has yet to shut down, I wonder if they heard that their funds have been cut off? (http://firstread.nbcnews.com/_news/2012/11/08/15024793-the-last-days-of-romneyland?lite)

November 12, 2012 at 3:51 pm
(3) lynn kramer says:

All insurance agents will be losing our jobs in 2014. Navigators on the exchange do not need to be licensed agents. We are independent small business people advocating for individuals against the carriers and understand how benefits work. W
e also understand the claims process how to get individuals paid but were completely left out of the pppca bill. This is a job killer read the fine (yes I have read all 2000 pages). Groups under 50 will only need coverage for full time employees. Lots of people will become contract labor or have to carry two full time jobs. Part time is defined is under 30 hours a week. Many will see an income cut. Carriers only way to deal with pricing is to reduce the provider networks to compete. Your only option for service will be a call line. We need to start writing our congress men and women democratic and republican. This isn’t about Partisan politics. Jobs will be lost. We need to get this bill fixed before it goes into affect. We will all be hurt by this…

November 12, 2012 at 10:21 pm
(4) Duh says:

I meet with small business owners every day. Obamacare is another cost being dumped on their business after 5 years of a depressed economy. These businesses have already begun layoffs to get under the 50 employee threshold. . They will not be adding to staff. They will be reducing hours to keep employees under the 30 hour level to avoid Obamacare’s reach. None of these scenarios leads to increased jobs and an improving economy. These are merely acts of survival for many businesses that have barely survived this economic downturn. Small businesses employ 52% of all Americans – we can’t afford to have this sector looking to cut and reduce jobs at this critical time in our economic recovery.

This is not mention the medical & insurance professionals who will also find their jobs in jeopardy. Anyone with any business sense should see that Obama’s plans have the exact opposite affect of what is intended. If he had been focused on jobs and the economy instead of his own legacy we be in a better position to discuss national health care. Hopefully my free stuff is still available when I need it!

November 13, 2012 at 1:07 am
(5) mikem says:

remember the reason business moved all those jobs overseas? NAFTA? get ready for the” giant sucking sound” part 2 as business sends more jobs overseas and the ones that have to stay will cut back hours of full time employee’s to part time status and hire more part time help to cover those hours cut from the full timers. this fact is so obvious and people STILL voted for Obama…..amazing

November 13, 2012 at 5:11 am
(6) tpaine says:

I own a small business and planned to open a second location next year.
Given our status quo election, those plans are back in the drawer as I’m, AGAIN, uncertain what additonal taxes (costs) I’m going to see next year.
There’s the problem that Democrats just don’t seem to get. With them in power, you NEVER know what your costs are going to be. This scenario is being repeated over and over again nationwide. Democrats in power = no new jobs.

November 14, 2012 at 12:27 pm
(7) dick says:

I agree with mikem’s cmment, but can’t blame anyone but the people for putting up with imports. Allwe need to do is suck it up and quit buying from manufactures outside of the USA.If we boycot these companies and they start losing thier profits I think things would work in our favor. But we need to stay with it. Most of the people in this country could care less. Cell phones are just one of the many products made in china to the tune Of 1.5 million chinese workers. people stand in long lines to get the latest phone. How lazy can we get .

November 14, 2012 at 1:54 pm
(8) CliffyJune says:

NBC Universal laying off about 450+…didn’t realize they were right wing

November 15, 2012 at 9:33 pm
(9) Sue says:

I am conservative and yes, Oblamocare is the worst thing to happen. Health care needs to be reformed; not gov’t owned. Medicare has been gutted, small businesses are cutting back so people are losing jobs, and the cost to the average American has YET to be realized. I hope all you Oblamo voters are happy. Middle class will pay for it.

November 15, 2012 at 10:55 pm
(10) spock says:

The sale of robots is up 32% last year and expected to exceed that this year. Robots work 24/7 and don’t require Obamacare AND are tax deductible. The price of robots is coming down while the cost of an employee just went up.

November 16, 2012 at 2:11 am
(11) Carrie says:

I work for a small hospital and will be going contract so healthcare will not be required, but at least I can still work all the hours I can get. My family will just pay the penalty (much cheaper for us) and have an emergency fund to pay any medical costs out of pocket.

November 16, 2012 at 11:19 am
(12) Ashley says:

For those of you who may opt to just pay the ‘fee’ instead of accepting Obamacare, look into it first – if I am not mistaken, there is a clause in there that says the IRS cannot penalize you in ANY way for refusing to pay the fee. Just a thought.

November 17, 2012 at 9:02 am
(13) Ron says:

I can’t belive people are so negative about Obama care and the Democrats. Republicans just care about thier wealthy buddies.Look at me I make $40,000 a year, I’m a rich republican. Besides Capitolism only favors people that want to work. Why should you need a job when America is the richest country in the world. Let some rich guy pay the bills. The only reason I’m a loser is because there’re too many over-achivers out there. The Democrats get it. They know how to blame someone else for things. Even though I’m perfectly healthy, well educated and mentaly fit, it’s not my fault I can’t find a job. There’s always some person that’s willing to getup earlier, work harder, and put in more hours than me. How is that my fault ? At least the Democrats and half of the country get it. God Bless America !

November 18, 2012 at 9:17 am
(14) Mark says:

Health insurance has always been a part of employment. However, management feels a bigger commitment to stockholders than to the employees that helped build their company. The greed at the top is insane.

I would like a list of companies against Obamacare, so that I can boycott them.

November 20, 2012 at 6:52 pm
(15) concerened_voter says:

I would like a list of companies in favor of Obama and Obamacare so I can boycott them.

As a small business co-owner, my partner and I have already started downsizing and limiting the hours of our employees. We are already struggling, and with the new taxes that the Obama administration is adding, it’s going to be difficult to keep the business afloat.

November 29, 2012 at 2:28 am
(16) Steven says:

Seriously?

I suggest you look at the long list of medical device manufacturers that are now either closing or shipping jobs overseas because of the new equipment tax in Obamacare. I will help you out, you can start with Stryker,, Boston scientific and Medtronic.

Also the long list of community colleges that are laying off staff, again I will give you a hand, You can start with Community College of Allegheny County and Western Buckeye Educational Service

Stop buying in to the propaganda and do some real research, Obamacare has just created the 28 hour week

January 15, 2013 at 7:44 pm
(17) Terra says:

I work for a restaurant that is cutting all full time employees to part-time employees. The same thing happened to my husband. A friend of mine works for Sears and had the same thing happen to him. So now we have to pay more taxes, pay for health insurance, and do it all on part-time wages? Yeah, way to go Obamacare.

January 17, 2013 at 4:59 pm
(18) Steve says:

I’m sorry to tell you my works for Extended Stay America Hotel chain as a hotel manager, and they have been told as of March 1 all full time employes are being taken down to 35 hours a week and part time employes are only going to get 28 hrs or less a week.

So when all the part time employes walk out how is going to do all the work, maid service, front desk, night laundry? You will not find any on that would work 28 hrs a week and still have to pay for there health care.

January 18, 2013 at 11:22 am
(19) Concerned says:

I agree with Steven. My wife worked for a medical device company and just got laid off today. The reason, as was explained to her, was downsizing because of Obamacare. There are more layoffs to come with that company.

I work for a large disability insurance company and we have been ‘quietly laying off’ for 2 years to get ready for Obamacare,. I have read, seen and heard about thousands of jobs lost because of Obamacare.

How is this good? The ‘fiscal patch’ raised my FICA tax 2%. Obamacare has cost my wife her job. I fail to see the good in a system that causes the loss of THOUSANDS of jobs.

If Obamacare was the answer to our healthcare needs, why did only one party vote for it. Democrats should be ashamed for passing Healthcare reform that affects so many, yet only one party voted yes.

It is not only the Democrats fault. I blame congress. How does the loss of jobs stimulate the economy? Anyone knows that you can’t spend more than you make….except our congress.

January 19, 2013 at 4:59 pm
(20) Melissa Lamphere says:

I actually found this article while searching for a list of companies that are taking punitive steps against employees due to perceived increased costs from the pending healthcare initiatives. The few I know of will impact my spending, because some were companies I used (like Whole Foods, for instance), but will no longer give my business. I live in a free, capitalist, democratic country (in theory), and don’t feel that my job or anyone else’s should be based on whether I agree or do not with another citizen. Differences need to be not only respected, but relished, because we need them for growth and change.

January 21, 2013 at 1:54 am
(21) Scared Businessman says:

I own a small business and we are over the 50 person threshhold and currently don’t offer a health insurance plan. We discontinued it a couple of years ago because we lost too many participants to stay “qualified”. We are currently laying off some workers and going to independant contractors inorder to get and stay under the 50 person threshhold since 2013 employment will be used to determine 2014 eligibility. We already have an uncertain economy and the unknown costs and regulations of Obama Care are too scary for us to take a risk right now. We had considered expanding and hiring additional people, but things are too uncertain and the cost of Obama Care was the ‘straw the broke the camel’s back’. If Obama Care turns out down the road not to be too expensive, we might reconsider. I talk to my peers at industry events and functions and it is surprising how many other owners are also cutting back a bit. The risks and costs of hiring additional people have never been so high. so it’s too risky now. Sorry Barack, but it is what it is,

January 25, 2013 at 7:42 pm
(22) Bobbi Owen says:

i am a 34 year old single mom of three.. i have been employed for 5 year in morristown tn 37708 ihop.. owned and operated by david reller.. hoever i feel this is a crock of u know what… its a run around with the gov.. first cutt our hrs to save the owner money then leave us too fin foe our selves on insurance.. which with hrs, cutt makes this task even harder than at full time hrs.. now that gives us the options of foodstamp benefits.. ok now u r on the gov money again.. so hows this helping our economy?????? i know when u have money we peeonns dont matter to u.. i work hard to keep a roof and clothes and food for my family, and now i will struggle more addin another bill while cutting hrs which cutts my pay.. so tell me if u can exactly again (how this is helping your people of the UNITED STATES ) that u OBAMA say u care so much about???????

February 3, 2013 at 10:45 pm
(23) Cindy says:

I was informed last week that the owners of the locally own restaurant i work at, will be offering benefits to all their employees (so they don’t have to pay the fine) but will be hiring new employees so they can cut everyone’s hours down below 30 hours a week so they don’t have to pay for the benefits.

June 27, 2013 at 2:52 am
(24) Sanducdy says:

It’s like we’re headed back a couple centuries. How can our freedom to choose be so dismissed and over-taxation be so accepted by this country? It’s ridiculous!

Why wouldn’t the government first make insurance affordable, before they demanded that people who couldn’t afford it to begin with, let alone after their company reduced their hours by a full week’s pay, and still try to make it happen? Oh wait… those insurance companies were probably the ones sponsering this whole fuster cluck… right, right.

August 3, 2013 at 1:22 pm
(25) Will says:

If your business is so great (of course it is, it’s yours!), you’ll have to integrate a benefits package anyway, if you are to stay competitive.

You want the best employees, yes? Again, you’ll have to offer them something more than a good wage. However, if the whole thing is against your principles, you just may have to offer that bigger wage, to help offset the cost of the federal insurance.

And don’t kid yourself – this whole notion of companies eliminating FT workers for PT workers, has been a long time coming, even before people knew who Obama was; even before the Clintons were pushing for a similar healthcare system.

Those businesses that stick it out are going to flourish nicely once things start to take effect. It will take a couple years, but it will work out.

August 4, 2013 at 2:23 pm
(26) Alexa says:

Why does it seem OK that so many people are part-time already??? I don’t get this. We have a big underemployment problem in this country. People can’t make ends meet because employers, yes, many of the large ones with share holders, won’t hire and keep full-timers. So, the whole point of this article is moot . . . Money means more than people (or society) now, and for those companies where that is not a hidden axiom, Obamacare just gives them a further excuse to keep people at part-time.

August 4, 2013 at 2:44 pm
(27) Alexa says:

After reading the comments here, it seems that many don’t know how Obamacare actually works, and are basing important decisions on deficient information. What of the alternatives? Is there some way that you can figure out that would allow regular working people to have health care (instead of only govt workers and the wealthy . . . ), reduce emergency room costs, etc, that would be cheaper (lets go for universal, one payer then, or would you fight that too)? Or don’t you care whatsoever? What is the point of having a business if people are dropping dead around about? Maybe if these people weren’t hidden, if the media would actually cover the homeless, underemployed, and those dying from cancer and other diseases because they don’t have health care, things would be different. It seems a large portion of America has become brutal, cold, and callous. Check out world health statistics and how other countries handle things now. Our country is looking more and more barbaric in comparison.

August 21, 2013 at 3:43 pm
(28) BCL1 says:

My mother works as a cashier a Sears. The company is cutting the hours of employees to under 30 so that they will not count as full time employees to avoid paying for medical coverage.

October 11, 2013 at 4:03 pm
(29) James says:

Will – You obviously do not understand how business works. You could have the best employees on the planet but if you cannot offer competitive prices you won’t have any customers. Why do you think Walmart is so successful? Do you really think Walmart employees are the best employees out there? Not a chance. It’s because their prices are lower than everyone else. It’s basic business. You really should read about how it works before trying to comment on it.

Alexa – The media doesn’t cover homeless, underemployed, and those dying from cancer and other diseases because they don’t have health care because there aren’t any. You think MSNBC wouldn’t absolutely LOVE to show those people all day every day and say that’s why we need Obamacare? It is a federal law that if ANY person walks into an emergency room, they MUST treat that patient.

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