The Employee Cost of Mandated Healthcare
As the biggest supporters of ObamaCare continue to claim that businesses cutting employee hours are not a result of the health care law, the reality is much different. Company after company is starting to cut hours in order to maintain low costs so that customers can purchase their products. Forever 21 clothing company just cut employee hours to 29.5 a week in order to avoid paying a fine for employees working more than 30 hours per week. Forever 21 cannot afford the Affordable Care Act and soon, many other small businesses will find they cannot afford it either.
Private companies are able to produce affordable goods by keeping their production costs low. Under the ObamaCare mandate, Forever 21 would be forced to raise their costs, which in turn, would raise prices for the consumer. Forever 21 “recently audited its staffing levels, staffing needs, and payroll in conjunction with reviewing its overall operating budget” to finalize the decision to stop hiring full-time workers because they cannot provide customers with affordable pricing if they must obey the mandate. ObamaCare is now hurting the amount of money employees make since they cannot work the same amount of hours they were before.
Employees cannot afford to live by earning less money and companies cannot afford to pay them more for fear of facing drastic fines that will put them out of business. The point is ObamaCare hurts everyone. Forever 21 is just the first of many companies to cut employee hours to avoid being fined for not meeting new healthcare requirements.
This clearly answers who is looking out for the American people. It is not the federal department who wants to take your money and doesn’t give you a say in how it is spent; it is companies like Forever 21 that are bending over backwards to prevent customers from having to pay more while working to keep people employed.