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Restaurant cuts staff, blames health care reform

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Posted: Jan 15, 2013 6:04 PM by Brittany Weiss
Updated: Jan 15, 2013 6:04 PM
Source: WBRZ

  Rating: 4.0 (4 votes)

Topics: Franks, Restaurant, Obamacare, Fired

PRAIRIEVILLE - Businesses are making cuts to their payroll ahead of the implementation of more health care reforms next year from the the Affordable Care Act.

Under the law, businesses with more than 50 full-time employees will be required to offer health insurance or face a penalty of $2,000 per person.

Frank Dedman, the owner of Frank's Restaurant, told News 2 he made cuts to his staff to be in compliance with the new rules and regulations.

"We've had people here for quite a few years, majority of them were part-timers," said Dedman. "I had to let a couple of my full-timers go."

Employers like Dedman who have 49 full-time employees or less will not be required to offer health insurance. In addition, smaller companies with 25 or fewer employees could qualify for tax credits if they do offer insurance.

As a small business owner, Dedman says the changes could make it difficult for businesses to grow.

"What incentive is there for my children to open another restaurant?" he said.

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