WASHINGTON (UPI) — Several significant employers are saying they plan to reduce full-time staff to avoid having to comply with the new U.S. healthcare law.
The law itself could be in jeopardy, as Republican presidential candidate Mitt Romney has said he would try to repeal the law known as Obamacare. President Barack Obama, on the other hand, would hold onto the law.
The Wall Street Journal reported Monday that Pillar Hotels & Resorts, which includes 5,500 part-time workers on its payroll, is among those hiring more part-time workers.
“The tendency is to say, ‘Let me fill this position with a 40-hour-a-week employee.’ I think we have to think different,” said Chief Executive Officer Chris Russell.
CKE Restaurants is owned by Apollo Management, an equity firm. In turn, CKE runs Carl’s Jr. and Hardee’s restaurant chains. In late summer, the firm began hiring part time workers to replace full time workers who retired, the Journal reported.
Erin Shields Britt, a spokeswoman for the Department of Health and Human Services said studies have shown that the profile of the U.S. labor market would not change significantly due to the healthcare law.
“Consistent with the experience in Massachusetts and projections of the Congressional Budget Office, the healthcare law will improve the affordability of healthcare while not significantly impacting the labor market,” she said.
“This law will decrease costs, strengthen our businesses and make it easier for employers to provide coverage to their workers,” she said in a statement.