The employer mandate part of Obamacare was hailed as one of the important hallmarks of Obama’s nationalized socialist healthcare system, along with the contraception and individual mandates. As of January 1 of this year every employer with 50 or more full-time employees was mandated to provide healthcare benefits to their workers.
Full-time was defined as 30 or more hours per week, prompting many employers to cut employee hours to less than 30 hours per week, resulting in many Americans taking a 25% or more cut in pay, which many of them could not afford. Other employers laid workers off and some knew that they could not afford the additional cost of healthcare benefits so they either sold their business or closed their doors.
However, many companies decided to bite the bullet and offer the required healthcare benefits as mandated. One of those employers is Billy Sewell who owns 26 Golden Corral franchises in six Midwestern and Southern states. He employs around 1,800 people and prior to the mandate, he only offered healthcare benefits to salaried management.
Once the mandate took effect, Sewell complied and offered healthcare benefits to his 600 service workers. At the time, he estimated it would cost him over $1 million to comply and wasn’t sure that his narrow profit margin could afford such an expense and if he could remain in business. To meet Obamacare employer mandate requirements, Sewell agreed to pay 65% of the cost for each employee.
Nearly ten months later, Sewell is surprised to discover that only 2 of the service workers took out his employer provided healthcare benefits.
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