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Business Owners May Face $100-Per-Day Penalty Under ObamaCare

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Unions are suddenly no fan either. I guess a lot of people are finally starting to read the regs.

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The increase in regulations these small businesses have to monitor and comply with is where the "onerous" starts to come in. What may not seem like much individually can, when taken in their entirety, often overwhelm the small business owner.

If the task is too onerous, FBD probably needs to outsource compliance to a competent HR firm in the Indian subcontinent.

The increase in regulations these small businesses have to monitor and comply with is where the "onerous" starts to come in. What may not seem like much individually can, when taken in their entirety, often overwhelm the small business owner.

 

I can only speak for the company for which I work, BUT this has actually IMPROVED our control of labor costs. We used to play fast and loose with the part time employees. We are seasonal, so during our peak season, we'd work them full time (or more) but they wouldn't be moved to full time status if they exceeded the traditional part time hour limit. We took advantage of these employees, first. But secondly, we didn't control our labor costs. Now, with this clear limit on the number of hours an emplyee can work before having to be offered benefits. It has forced us to monitor our payroll, and one benefit to the employee is not being worked an enormous amount of hours with no reward. Additionally, because we employee true seasonal employees as well, and they were worked like DOGS, and sometimes kept "seasonal" while we extended the "season" beyond what was initially outlined upon hiring. Now, we have to stick to a pre-determined season. We have 3 categories of employees who do not receive health benefits: Part Time, Variable, and Seasonal. All are allowed to work only the 1540 hours in a year. Part time employees have a fairly consistent schedule of hours over the course of the year. Seasonal employees are worked up to 1540 hours from Mid-March through Mid-November. Variable employees may work some weeks at full time, others at very few hours, up to the 1540/year limit. So, the lesson for us was to manage our employees hours to benefit our business, while keeping them within the limits. Given that the hospitality industry is a dynamic business cycle, it makes no sense for us to have a huge number of full time employees with full benefits, when there is no work for them. For instance, in mid-January, at our midwest resort location, our food & beverage operations are at all time low covers because people don't go to a golf resort in Indiana in January. We don't need 100 golf grounds crew in January, and there isn't enough for them to do.

 

We fill our full-time opportunities that with the variable, part time or seasonal employees if at all possible. We rarely hire from the outside for full time employees anymore.

 

One bright point, while not full time jobs, we have been able to hire MORE people because of the need to watch the 1540 hour limit.

 

We knew about this last fall, and implemented our changes in December, meeting with our employees prior to the change. Our HR department has changed their recruiting methods, and what is presented to our candidates, relative to the type of employment it is. The positions are defined and presented as Variable, Part Time, Seasonal or Full Time. We now have separate orientations to address the different types of scenarios the employees may be employed under.

If the task is too onerous, FBD probably needs to outsource compliance to a competent HR firm in the Indian subcontinent.

 

Got anything to add to the conversation?

I have multiple clients who previously contributed to their employees health plans and now have gone to largely part time employees with no coverage. The owners are basically saying to heck with it. It will be interesting where this all shakes out in a few years.

I can only speak for the company for which I work, BUT this has actually IMPROVED our control of labor costs. We used to play fast and loose with the part time employees. We are seasonal, so during our peak season, we'd work them full time (or more) but they wouldn't be moved to full time status if they exceeded the traditional part time hour limit. We took advantage of these employees, first. But secondly, we didn't control our labor costs. Now, with this clear limit on the number of hours an emplyee can work before having to be offered benefits. It has forced us to monitor our payroll, and one benefit to the employee is not being worked an enormous amount of hours with no reward. Additionally, because we employee true seasonal employees as well, and they were worked like DOGS, and sometimes kept "seasonal" while we extended the "season" beyond what was initially outlined upon hiring. Now, we have to stick to a pre-determined season. We have 3 categories of employees who do not receive health benefits: Part Time, Variable, and Seasonal. All are allowed to work only the 1540 hours in a year. Part time employees have a fairly consistent schedule of hours over the course of the year. Seasonal employees are worked up to 1540 hours from Mid-March through Mid-November. Variable employees may work some weeks at full time, others at very few hours, up to the 1540/year limit. So, the lesson for us was to manage our employees hours to benefit our business, while keeping them within the limits. Given that the hospitality industry is a dynamic business cycle, it makes no sense for us to have a huge number of full time employees with full benefits, when there is no work for them. For instance, in mid-January, at our midwest resort location, our food & beverage operations are at all time low covers because people don't go to a golf resort in Indiana in January. We don't need 100 golf grounds crew in January, and there isn't enough for them to do.

 

We fill our full-time opportunities that with the variable, part time or seasonal employees if at all possible. We rarely hire from the outside for full time employees anymore.

 

One bright point, while not full time jobs, we have been able to hire MORE people because of the need to watch the 1540 hour limit.

 

We knew about this last fall, and implemented our changes in December, meeting with our employees prior to the change. Our HR department has changed their recruiting methods, and what is presented to our candidates, relative to the type of employment it is. The positions are defined and presented as Variable, Part Time, Seasonal or Full Time. We now have separate orientations to address the different types of scenarios the employees may be employed under.

 

Thats great that it has improved your employers business practices. But unless I misread it sounds like they have broke many labor laws. . This law didn't change the laws it seems your employer broke.

Thats great that it has improved your employers business practices. But unless I misread it sounds like they have broke many labor laws. . This law didn't change the laws it seems your employer broke.

 

No laws were broken. The retail industry has been doing this sort of thing for YEARS. Christmas seasonal hires would get hired, worked as much as we could, then let go. As long as they didn't exceed the "probationary period" of 90 days and signed the seasonal agreement it was all good. We had transitioned to a primarily part time workforce (under 30 hours) in 2000-2001, simply because it is more efficient. It's easier to schedule, there's always somebody to call in when someone calls out, and covering time off is a piece of cake. And what we found, was that it is easier to hire reliable part time folks than full timers. Mom's that need extra income but need to tend to kids and can't work full time (nor do they want to) folks who want to pick up a second job all tended to be more reliable with better a better work ethic.

 

Everything that is being blamed on Obamacare, has been going on for years......rising insurance premiums (and the passing of these increases being increasingly shifted to the worker), and the transition to part time work, for example. The only difference, is now there is a convenient scapegoat to blame these shifts on. Again, there are problems with this law. But it's not the doomsday scenario that folks are describing either.

It is true that many of these things have been going on for some time. Obamacare just added to the problems, it didn't create them.

The law states that it is the business owners responsibility .Read the article . As I stated before ignorance of the law is no excuse

 

Why does the government and liberals think it is OK to increase workload and costs to businesses? This just makes it more difficult to survive as a small business. THEN the liberals hate big business! There is a disconnect in functional logic.

Why does the government and liberals think it is OK to increase workload and costs to businesses? This just makes it more difficult to survive as a small business. THEN the liberals hate big business! There is a disconnect in functional logic.

This was a real tough assignment. Took me all of 90 seconds to download a sample letter to workers off the Internet. It's all moot now anyways, as Reuters reported last week.

  • Author
This was a real tough assignment. Took me all of 90 seconds to download a sample letter to workers off the Internet. It's all moot now anyways, as Reuters reported last week.
How many employees do you have?
How many employees do you have?

I believe Xerox still makes copiers.

  • Author
I believe Xerox still makes copiers.
Sorry, did not mean to ask a complicated question......:banghead:

Today it was announced that with every employee's check this week there will be a letter explaining this issue. Also attached is a 2 page list of questions, with answers that could apply to the types of employee situations we have at the resort. We have 1400 employees.

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