Restaurants Switching Workers Employment Status Citing Health Care Act

By Scott Sarvay

Restaurants Switching Workers Employment Status Citing Health Care Act

October 10, 2012 Updated Nov 9, 2013 at 7:09 AM EST

UNDATED (Indiana’s NewsCenter) - The Olive Garden and Red Lobster restaurants are switching more workers to part time status in a move aimed at limiting costs from the new health care law.

Under the new law, companies with 50 or more workers could be fined if they don't provide basic coverage for full time employees and their dependents.

Beginning in January those penalties could significantly increase labor costs for some companies, particularly in low wage industries such as retail and hospitality, which typically don't come with health benefits.




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