There will be over 50 part-time workers, all of whom are uninsured, who will see a decline in the amount of hours available to them this week. The reason for the decline in hours is to help employees avoid having to pay for health insurance, which is part of the new healthcare law that has been signed by President Barack Obama, according to The Des Moines Register.
Employees who are working over 30 hours per week are to be offered healthcare insurance. The City Attorney for Cedar Falls, Tom Meyer, has said, “At this point this is the action we’re taking to make sure nobody qualifies.” Employees must work less than 30 hours in order for employers to avoid having to pay insurance or penalties.
With the new law put in place, businesses that have at least 50 employees or more will need to provide healthcare coverage to all employees who work full-time; otherwise they will end up facing a penalty. If the employees work less than 30 hours each week, the healthcare coverage is not required.
The Cedar Falls area is looking to cut back the number of hours that part-time employees are currently working, as this is the best way to avoid having to pay for healthcare coverage for thee employees. Several different food chains located in the state of Iowa, including Olive Garden and Re Lobster, have already made it clear that they may end up cutting part-time employees hours to avoid the cost of healthcare insurance for those employees.
Aside from the different food chains, a spokesperson for the largest grocery store chain in Iowa, has said that a number of college students would likely end up seeing a reduction in the amount of hours they would be able to work. Of course, the decision will ultimately be in the hands of the managers at different stores. The spokeswoman said, “Employees will have less flexibility under (the law) to work different schedules.”
City officials in different cities around the state of Iowa may also end up reducing the amount of hours that employees work. In Cedar Falls, the average amount of hours for part-time employees will be about 29 hours per week. A recent memo that was made has said, “The City of Cedar Falls, like many employers around the country, have to make difficult decisions that impact our employees due to the changes in the new health care laws.” Many employees are not happy with the possibility of seeing a reduction in the amount of hours available to them. However, it is something that had to be done.
Click here to find out which Part time jobs are available in Iowa.Part-Time Workers May See Decline in Hours by Harrison Barnes