IFA President and CEO discusses Obamacare and what it means for small business owners
As full implementation of Obamacare is set to go into effect next year, small businesses and specifically franchise owners are doing everything they can to understand the new law, while still trying to grow and create jobs. IFA President and CEO Steve Caldeira spoke with radio host Mark Carbonaro on FOX News Radio to explain how this law will affect franchise owners who are already living in a challenging economic climate.
“The health care law is anything but affordable for small employers, but the law is here to stay, so we are trying to work with the White House to educate them before full implementation begins,” explains Caldeira. “As an industry that is projected to create 162,000 new jobs and over 10,000 establishments, we need some flexibility with the law.”
Businesses that hire younger and lower skilled workers are now putting a ceiling on the work week of below 30 hours, as to avoid high penalty costs. These ‘29er’s’ as they have been called, are the workers that are really going to be affected because their hours will be cut. Yet as Caldeira explains, it is not because employers don’t want to offer insurance; it is out of necessity just to stay in business. “Companies are going to have to look at their business model and in order to remain profitable, will have to move people to part time.”
Small business owners will be forced to either stay under the 50 employee threshold or keep workers under 30 hours per week to avoid penalties and neither is optimal for a country that desperately needs jobs. “These arbitrary markers create perverse economic incentives. Where is the motivation for employers to grow and expand their business?” Caldeira asks.
Click here to listen to the full interview.