Written By : William Teach
October 10, 2012

Who would have seen this coming? Legislation has consequences out in the Real World

(Washington Times) The owner of Olive Garden and Red Lobster restaurants is putting more workers on part-time status in a test aimed at limiting costs from President Obama’s health care law.

Darden Restaurants Inc. declined to give details but said the test is in just four markets across the country. The move entails boosting the number of workers on part-time status, meaning they will work fewer than 30 hours a week.

Under the new health care law, companies with 50 or more workers could be hit with fines if they do not provide basic coverage for full-time workers and their dependents. Starting Jan. 1, 2014, those penalties and requirements could significantly boost labor costs for some companies, particularly in low-wage industries such as retail and hospitality, where most jobs don’t come with health benefits.

Darden, which operates more than 2,000 restaurants in the United States and Canada, employs about 180,000 people. The company says about 75 percent of its employees are part-timers.

One might say that 25% is a small amount, but that still amounts to 45,000 full time workers, and by moving more and more to 30 hours or less the restaurant chains reduce their exposure to what is a burdensome law with tons of regulations, fines, and taxes, all of which will increase costs artificially. Other companies, such as McDonald’s, are looking at the same thing, namely, increasing the number of part timers and reducing the number of full time workers. Which means less money in the pockets of workers thanks to Obama and the Democrats and their absurd legislation which can affect the entire economy, not just the 1/6th health care industry.

And let’s not forget that it will drive up insurance premiums by around 30%.

And less one thinks that Darden Restaurants is some raving right wing group, the CEO and Chairman of the Board, Clarence Otis, Jr., has given $30,800 to DNC Services Corp, ie, the Democratic National Committee, as well as $2,500 each to Debbie Wasserman Schultz and Max Baucus, this election cycle. He also gave $2,500, it should be noted, to Mitch McConnell. And, while he did give $2,300 to John McCain during the 2008 cycle, he gave double that to Obama, and a raft of money to mostly Democrats, including $28,500 to the DNC in 2009.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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