I think they have an option to make all employees part-time. Of course, that would be destructive in many ways.
No. They fire all the employees and rehire them as contractors rather than employees. It's more and more common these days. Hobby Lobby will then not have to cover any benefits for the people who work there, and the people who work as contractors will still be able to work full time.
Less destructive than paying the fine.
“If you ever pay the Danegeld then you’ll never be rid of the Dane!”