More and more reports are surfacing of local governments and school districts cutting hours for their part-time staff to below 30 hours in order to avoid providing full health care and avoid the penalties for not doing so.
Investors Business Daily reports Local Governments Reeling Under ObamaCare Costs.
The article provides 13 examples, including:
- Indiana – school districts across the state are reducing hours of their part-time staff.
- Salt Lake City – hours cut to 29 for 1,000 staff.
- Many other examples are local school districts.
The proposed new budget for the city where I live, Rancho Cucamonga, has a recommendation to reduce most part-time staff to below 30 hours because of the cost of full health coverage.
This is an unsettling pattern spreading across the economy. Here’s my posts discussion what I’ve read:
- Local governments – see comments and article above.
- State governments – State governments starting to change part-time rules
- Colleges – Colleges look at reducing adjunct profs to under 30 hours to avoid health care costs
- Food service & hospitality – Unintended consequences – reducing employee hours to avoid cost of health insurance coverage
- Danger of this becoming a general pattern – The new ‘49ers’ and ‘29ers’.
I fear we will see widespread unintended consequences from the new health care law.