Obamacare Will Make the Poor Even Poorer

Remember how Obamacare was supposed to help the economy and provide better options for those who couldn’t afford them? Now it seems that it actually forces employers to cut back on full-time workers and makes them use mostly part-time employees.

From the AP wire comes the story, “Prepping for Obamacare, Chain Cuts Workers' Hours.”

The owner of Olive Garden and Red Lobster restaurants is putting more workers on part-time status in a test aimed at limiting the impact of looming health coverage requirements. Darden Restaurants declined to give details but said the test is only in restaurants in four markets across the country. The test entails increasing the number of workers on part-time status, meaning they work less than 30 hours a week.

The reason that the company is performing these tests is because they are trying to survive economically. “Under the new health care act, companies will be required to provide health care to full-time employees by 2014. That would significantly boost labor costs for businesses.”

Will we get honest results from these tests? Perhaps, but there will be plenty of pressure to mislead the public about the results. The Obama Administration is not above encouraging companies to break the law in order to prevent bad news before the election.

In a memorandum dated September 28, the White House Office of Management and Budget counseled defense employers not to issue layoff notices on November 1. OMB assured employers that if they did not send out layoff notices and layoffs occurred, the "contracting agency," namely the Pentagon, would absorb the penalties and attorneys' fees the employers would have to pay, a significant cost to taxpayers.

I hope Olive Garden and Red Lobster are able to do what they need to do to stay in business. It is too bad that servers, who aren’t making any kind of fortune working at those restaurants, are now being robbed by Obama and Pelosi for the sake of a power grab.

Others have also noticed that Obamacare means more underemployment. A finance blog recommends investment in staffing companies because of the new costs of full-time employees:

The only solution is for employers to eliminate full-time employment positions for unskilled workers earning near minimum wage. Since businesses need unskilled workers for certain functions, employers will only offer temporary and part-time positions to these poor workers because temporary and part-time jobs are exempted from Obamacare’s employer mandate provisions.

This is pretty sad for America — especially for unskilled workers. They go from bad to worse under Obamacare, or rather Obama’s callousness.



  • CARLjr

    Olive Garden refuses to pay benefits to their employees. It is already common practice for companies to hire people to work 39 hours a week so they are "part-time". I know Wal-Mart has been doing this for years. Once you hit that 40 hour mark - they have to throw in not only insurance, but vacation pay and other benefits. Part-Time or Seasonal employees have no rights.

    Unions will be outlawed soon, minimum wage will be lifted. Wal-mart should have dormitories like the Chinese factories do - lets put all those blue vests in rooms with 12 other people. If you cover their housing, you don't have to pay them as much. Instead of hiring adults, hire a bunch of kids - they don't get sick or injured as easy and don't need as much money. If we want manufacturing jobs back in the US, we will need to be competitive with the kind of wages other countries pay. Our 10 year-olds can stitch together a soccer ball just as well as the Chinese girls do. USA! USA!

    Hooray corporate America! Stick it to your employees! Bottom line is
    WAY more important than the people that work for you or the service your
    provide to your customers. I for one will not tip my servers at Olive Garden and Red Lobster for the same reason. My bottom line is more important than you. I pay the minimum required - just like the one per-centers.

    • Phil1985

      If you want to find the above writer, you'll find him in the Olive Garden parking lot, fuming because your car is nicer than his.

      • Screeminmeeme

        LOL! Exactly.

    • Matthew Cannon

      I tip for the reason they are not paid that much. You are contributing to the continuation of the underclass by not "paying your fair share" or 'spreading the wealth around." Oh wait, you probably only want to spread other people's money around, not your own.

      • CARLjr

        They are not paid much - even less when you consider they offer no jobs with benefits. This company puts out a press release that a below minimum wage job is all they will offer. Below minimum employees is what they will attract. Ones that can't get hired at the restaurant next door that DOES offer a working wage and health benefits. I am sure they probably make the same below minimum decisions when they buy the food they sell you too. Substandard - in every way.

        • Jamie

          Funny how you feel your money is limited to the things most important to you, but a business should forget about what's best for them. Ah the moral superiority of being an authority on how other people should prioritize their spending. So convenient to hold back the tips while condemning the stinginess of others. "Other peoples money" disease is the only illness that could feel so good.

        • CARLjr

          Healthy employees at a restaurant? Who cares about that? The guy who
          can't afford to see a doctor and cannot take a sick day from work is not
          the person I want handling my food. Of course we are talking about
          microwaving bulk packaged pre-cooked frozen dinners that
          were made months in advance in a factory thousands of miles away. So I don't know if I would
          call it "food"

          If I want to eat pink slime-meat slurry in precooked pasta and boil-in-the-bag sauce I'll just get a Swanson's TV dinner for 99 cents.

          Don't worry, I'm not really stiffing the waiters at olive garden. I eat at places that do not have a history of exposing diners to hepatitis A.

    • jj

      My son is a server at the Olive Garden and has had folks, like you, at his table.
      Shame on you! If you feel what OG is doing is wrong - don't go to their restaurant! But if you do, don't take your issues out on the hard working individuals who rely on tips to support them (their hourly salary is far below minimum wage - a fully legal thing to do as it is assumed that most of their earnings come from tips). My son is a full time college student, doing his best to help our family in supporting the cost of his education. Please consider this, and all of the other circumstances that drive these workers to take on such a job, and acknowledge their hard work when its deserved.

      • CARLjr

        Below minimum. No benefits.
        They pay their employees $2/hr and still can't afford a cheap plan that barely meets the coverage requirements?

        Well, I guess Last quarter they only made a profit of $110.8 million.

        If this company does not acknowledge their employees hard work and compensate them for it, why should I have to cover it for them? Socialism!

  • bellaboo

    Unions will be outlawed soon...woohoo!!!!! We could only hope.

    • Doodlebug

      Lets hope so! They've gotten way to powerful. If only those who belong to them would realize how much more they would have if they did a good job and didn't have to pay union dues. I don't understand why they don't get it. They are suppose to be the educated and those of us who don't belong to a union are the dummies. I don't think so!

  • Father Pearson

    Darden restaurants donate to Planned Parenthood.

  • mag

    No question that certain companies are laying people then rehiring them as on-call or part-time so as not to pay the health care cost, happen to my son in one of the Vegas family chain casino's. But the 39 hour is a bogus remark as are others in your statement. Many companies pay full benefits at the thirty hour mark. As for Olive garden, it's a member of the Darden Restaurant chain ( Olive Garden, Red Lobster, and Longhorn Steak) and your right in what they may be saying (I don't know this for a fact) but is you don't think that Oba ma ca re is having an effect on their actions to some degree then your 15 watt in a room of 150 watts. OBC has also raised my family's insurance cost from approximately $340 a month for family after the first year to the current $850 plus a month. That's a minimum of $6000 a year out of our budget for this alone. Your blaming all the effects and not the cause. Your not tipping the servers that has nothing to do with anything other than your cheap or maybe your just one of the people in the world that have no problem being serve as long as someone else picks up the tabs for your actions.

  • http://www.facebook.com/linda.watrous.98 Linda Watrous

    They had better read the part in Obamacare about the definition of full time employees. This is a 118 page definition of full time employees in which they say that an employee can be considered full time if they work at least 30 hours a week. Employers will double up on part time unskilled workers working them less than 30 hours weekly and causing unskilled workers to have not 2 jobs but probably 4 jobs to keep their heads above water. The business will do what they have to in order to protect their business and the real losers are middle class and poor that will shoulder the blunt of Obamacare and the penalties that go with it. No one will be able to afford healthcare under Obamacare, only the very rich. Obama is a master at deceiving the entire world, the Bible tells us about Satan deceiving the whole world and right now Obama is playing Satan's part in this scheme.

    • http://intensedebate.com/people/The_John_Galt John Galt

      Obama IS a minion of Satan!

  • mrman

    vote ron paul. or ul b sorrrrryyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy... u all been fooled since bush sr. had jfks head popped (brains all over the back of the pres limo's TRUNK- shot from the front....) in texas back when,... dont believe me? do ur research stupids

    • http://intensedebate.com/people/The_John_Galt John Galt

      Got the wrong guy ..... it was Johnson.

  • dondh

    Joe Biden is the second biggest joke in this administration. Not only that, he is one of the most disrespectful persons I've ever seen. He spent most of the debate degrading and lying about Gov. Romney and Mr. Ryan in almost everything they stand for. He tried everything he could to disrupt Mr. Ryan in this debate tonight and said almost nothing as to what his administration will do. You know, this bozo doesn't even know, or won't let on, that his leader is a confessed illegal alien muslim who is unqualified to occupy the office of president. As I said, biden is a big joke who thinks he knows it all!!!

  • VocalYokel

    Barry-O loves the poor...that is why he is creating so many of them !

  • LeSellers

    These results are often called "unintended consequences". I do not believe that. They are most assuredly intended consequences, and here's why I assert this position:

    Whiles governments are instituted among men to protect individual liberties (their only legitimate function), governments have no incentive to do so. Quite the opposite: it is in every bureaucrat's interest to grow his bureaucracy, in every politician's interest to increase his power. In short, the first imperative of government is to grow.

    To do so, the state must convince people to grant it ever increasing control over their lives and to relinquish those inalienable rights and freedoms granted us by our Creator.

    To achieve this intermediate goal, governments create crises. For example, in the XIX, Horace Mann wanted to divorce children from their parents' religious values. To do so, he created the "literacy" crisis. There is no evidence to even suggest that the children in Massachusetts could not read or write. But Mann and his cronies inflicted government-run, tax-funded welfare schools on the state (and, eventually, on the country) by repeating the lie that children could not read.

    Likewise, in the 30s, Roosevelt convinced people that the elderly could not take care of themselves without a program called antiSocial inSecurity. He cared not a whit for the elderly: he wanted decades of Democrat control over the levers of power. His lies (and raw political power) finely won enough people over (or was that finally "run enough people over"?) that we are now saddled with a huge socialist program and the vestiges of those decades of Democrat control. It's so bad that most USmericans imagine that antiSocial inSecurity is a "good thing", and do not weigh the costs of this goliath in their lives.

    Here's the trick: politicians and bureaucrats know that strong families do not need (nor do we want) them. Weak families, on the other hand, do. The weaker the family, the more government they demand. So it is hardly surprising that governments strive to undermine families: it's the more certain way for them to do what they want to do: grow their power.

    GRTF-Welfare schools undermine parents. AntiSocial inSecurity undermines adult children. AFDC (now TANF) undermines the parental-filial bond. They all make fathers superfluous. Government welfare destroys the bond among neighbors (who would, in times past take care of each other). This constant, relentless erosion of natural family ties has resulted in 60% of births being to unwed mothers, huge numbers of "single-parent" families, to millions of tax-funded abortions every year, to gangs, to drugs, and the full gamut of "modern" societal problems.

    No one is so näive as to believe that our politicians and bureaucrats don't know this. We must, therefor, conclude that it is by design, by their design.

    Which gets us back to the original point: this is all on purpose. We must ask: "Cui bono?" (Who profits?) If anyone believes that it is us, the people, who profit, I question that person's sanity.

    Mr. O'bama, where are the full-time Jobs? (And while we're at it, where are the war-zone absentee ballots, Mr. Commander-in-Chief?)

  • Henry

    It is all part of the Marxist equation. The plan is for the complete meltdown of America. They do not care a hill of beans the outcome as long as it is the demise of America. People think that something like this could NEVER happen to America. It is doing it while America's Ignorant Class is clueless as a doorknob. It will take blood flowing in the streets for them to wake up. By then, it will all be too late. Say bye bye.