These 19 States Just Hiked The Minimum Wage: Here Come The “Unintended Consequences”

Starting on January 1, 2015, a one year-delayed component of Obamacare kicks in: according to the health care law, businesses that employ at least 100 full-time workers – or full-time equivalents, including part-time workers – must offer health benefits to at least 70% of those working at least 30 hours a week by Thursday, or pay a penalty. This will expand to by next year, when companies will have to provide insurance to 95% of their workers, and firms with 50 to 99 employees must offer coverage as well. As a result, and as even the USA Today reports, “many businesses in low-wage industries have hired more part-time workers and cut the hours of full-timers recently to soften the impact of new health law requirements that take effect Thursday.”
More details:
Businesses in low-wage sectors, such as restaurants, retail and warehousing, are feeling bigger effects because health insurance represents an outsize share of their total employee costs, says Rob Wilson, head of Employco, a human resources outsourcing firm. Many of those with just fewer than 100 staffers have hired more part-timers in recent months, while those with at least 100 are reducing the hours of existing employees, he says. Michelle Neblett, senior director of labor and workforce policy for the National Restaurant Association, says many restaurants are being more cautious about boosting the workweek of part-timers to 30 hours or more, doling out such increases to reward top performers.
Those strategies have not had a noticeable impact on the labor market. Monthly job growth has averaged 240,000 this year, up from 194,000 in 2013. And full-time employment has increased at about twice the rate of part-time payrolls, Labor Department figures show.
Still, the number of part-time workers who say they’d prefer full-time jobs has remained stubbornly high. That can at least partly be traced to the inclination of the restaurant, retail and hotel industries to hire more part-time workers to sidestep the ACA mandate, Royal Bank of Scotland wrote in a recent report.

This post was published at Zero Hedge on 01/02/2015.