Posted on 11/12/2012 4:39:51 PM PST by Red Steel
Applebee’s CEO Zane Tankel hinted yesterday that the company will be likely be laying off several employees and will refrain from hiring more due to President Obama’s re-election and the roll-out of Obamacare.
For those of you unaware of Obamacare, it a new initiative put forth by the President which requires any employer with 50 or more employees to provide federal government-approved health care for its employees. If a company fails to do so, it will pay a $2,000 fine per person.
Tankel released the following statement to Fox News:
“We’ve calculated it will cost some millions of dollars across our system. So what does that say – that says we won’t build more restaurants. We won’t hire more people. If you have 40 or 50 employees at a restaurant, ant eh penalty is $2,000 and you’re going to pay $80,000 or $100,000 penalty, there goes the profit in your restaurant.
He continues, “I want to simply say we are looking at it, we are evaluating. If it’s possible to do without cutting people back, I am delighted to it, but that also rolls back expansion, it rolls back hiring more people, and in a best-case scenario, we only shrink the labor force minimally. Best case.”
Tankel is the CEO of Apple-Metro which owns 40 of the Applebee’s restaurants in the New York Area.
how soon will Obama propose that the government take over Applebees , Papa John’s ,etc etc etc
Basically - as per the Applebees example ... thousands of companies will change corporate structure and tend to go franchise for each restaurant, store or shop. In this case each entity will be owned by the local investor and a limit of 45-47 employees will be set by franchise agreement. This will also mean that existing corporate franchises will be renegotiated and many store locations downsized and another location opened within a certain acceptable distance perhaps owned by the same franchise owner to keep the peace... By 2015 the U.S. will have millions more stores/shops/restaurants with under 50 full time employees
How does the 30 hour week play into this?
I think at less than thirty hours you don’t incur a penalty. Darden Restaurant Group (Red Lobster, Olive Garden, etc,) has already said they are going to experiment with sub-30 hour workers to avoid this. The Darden CEO is a big time Obama fan. Where are the lefties screaming for a boycott there? Maybe we could start a false flag operation against them.
And yet, somehow, all the employees affected by this, will (because of media-suck-Odiicck propoganda), blame Republicans and “rich people” — instead of the commie/Demosocialists who are actually causing the demise.
No sympathy of any of ‘em. Tips? Haha.... guess again.
Oh, it's there -- http://www.facebook.com/groups/26012226159/#!/photo.php?fbid=468800479839152&set=a.362561537129714.96045.360781383974396&type=1&theater
Check out Free Republic's Facebook page.
I’m going to like that page just to spread the pain.
There are a lot of people who’ve been asking (myself included), why it is that companies are looking at paring down their workforce levels BEFORE 2013, though the penalties don’t actually kick in until 2014. The best explanation I had heard up until now was that these companies had to “plan ahead.”
However, today I heard the “real” reason... The year, 2013, is the “baseline year,” and from the beginning of 2013 to the end of 2013 will be used by the IRS to calculate the number of employees for which to force the purchase of insurance, or calculate the fines on the employers. And this will continue on for as long as Obamacare continues on...
So the previous years employment numbers will be used to determine the employment levels for the current year. This is beautiful, if you think about it... By using this sort of “math,” the IRS can change the employment levels mid-stream, yet the fines will be retroactive. So for example, let’s say that employers cut back employee hours to 29 a week, to get under the “full time” status, the following year, the IRS might declare that a “full time job” is now 27 hours weekly. All of a sudden, every employee with a 27 - 29 hour schedule is now considered to be “full time,” and the employer is subject to the penalties and fines, even though they were previously within the limits.
It’s really sickening.
Mark
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.