Investor’s Business Daily has compiled a list of employers across the country, public and private, that have cut back jobs or hours in response to the ObamaCare employer mandate.
The employer mandate is applied as follows: 1) Companies with 50+ employees are hit with a penalty for every full-time employee who is insured through a federally-subsidized exchange. 2) Companies with 50+ employees will face a $2000 tax per employee if they do not offer insurance and have at least one employee on a subsidized insurance plan. The tax is applied to all but the first 30 employees. As such a firm with 100 employees would facing a $140,000 tax (70 employees x $2000)!
Employees are considered full-time if they work 30 hours or more per week so many companies are cutting people back to part-time to avoid the tax penalties.
IBD has identified 258 employers who have cut back staff or hours in order to avoid the penalty, 8 of which are in New Jersey, including: Toms River, NEMF Trucking Co., Little Falls Board of Ed, Hanover Twp., Middletown Twp., Franklin Twp. Board of Ed, Mount Ephraim Board of Ed, and Kean University.
The below report from News 12 new Jersey documents the cuts in Toms River and Middletown, while Berkeley Twp. is likely next on the list.
IBD’s points out that their list is only representative of those companies where “strong proof” exists that the mandate is the direct cause. Logically, many other employers are doing the same or will do so in the near future as the ObamaCare train wreck continues to roll out.
Of course, the employer mandate isn’t the only onerous aspect of ObamaCare that’s destroying jobs. The medical device tax has also had a devastating impact on that sector of the health care industry where thousands of jobs have already been cut.
American shouldn’t be forced to choose between jobs and health insurance. All the more reason ObamaCare needs to be repealed and replaced with a free-market, pateient-centered model!