Businesses report cutting hours as a result of the ACA

The Affordable Care Act may already be impacting employee time. For a new survey commissioned by the U.S. Chamber of Commerce and the International Franchise Association, Public Opinion Strategies surveyed 208 decision-makers in franchise-owned businesses and 206 decision-makers in non-franchise businesses with 40 to 500 employees regarding the ACA.

Among these business leaders, 64 percent of franchise managers and 53 percent of non-franchise managers believed the ACA would have a negative impact on business.

Many respondents reported their health care costs were already increasing, and reacted by minimizing worker hours. Thirty-one percent of franchises and 12 percent of non-franchises reduced hours. In addition, 27 percent of franchises and 12 percent of non-franchises reported replacing full-time workers with part-time workers.

A number of businesses with 40 to 70 employees - 59 percent of franchises and 52 percent of non-franchises - plan to reorganize staff in order to stay below the 50 full-time equivalent cutoff. Businesses above this threshold will be required to provide health care to full-time workers, defined by the law as anyone working at least 30 hours per week.

However, according to recent Bureau of Labor Statistics data listed on the White House website, 9 in 10 positions created since the ACA was written into law have been full-time.

Time and attendance software is beneficial for supervisors keeping track of worker hours.


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