General Discussion
In reply to the discussion: My boss's boyfriend's employer is cutting jobs because of "Obamacare". [View all]Yo_Mama
(8,303 posts)Edit to add:
If the restaurant has more than 50 full-time equivalent employees and did not offer insurance, it would be fined per employee that used the exchanges to get insurance. That's not until 2014.
One reason that a restaurant might fire employees would be to drop below the 50 FTE mark. I do know of some businesses that are dropping a few employees to get down below the mark. Some are combining duties and others are using contractors to provide those services. If you had 55 FTEs and did not offer insurance, the penalty would be $2,000 X 25, or $50,000.
Larger restaurants that are open longer hours often do go over the 50 FTE mark, so there is a high incentive to cut workers.
Of course, the major cost for most restaurants will be the menu labeling requirements. That is an added source of liability and costs, but I thought this mostly affected chains?