Sunday, February 23, 2014

The New Obama Work Week

Politicians always have our best interests in mind when they pass new legislation, but they always seem to screw things up and that is why we have the expression, “The road to Hell is paved with good intensions.”

Employers have to cover full time employees with health care insurance. The employer is kind of OK if he can keep his work force under 50 people. There are also other things that have to be covered for full time employee, so as an employer, if you can eliminate the full time employees, you limit your future liability.

For example take a small shop employing two full time employees and one part time employee. It's open 9 hours a day from 11am to 8 pm 7 days a week. In this case,there are two people working 40 hours each and one 32 hours.

Full time employees get benefits like vacation and sick time, where part time employees get zip. With the Obamacare perspective in mind, there is an alternate employer option to reduce having to participate in the plan. Employees who work less than 32 hours are not covered by the new health care plan.

So examine the schedule below, instead of two full time workers at 40 hours and one part time worker at 32 hours, we now have a new work schedule with 4 employees all working 28 hours a week. As far as the government is concerned, we have an additional person to boot, now employed. The trouble is, they don’t qualify for employer mandated health care. Some readers will jump on me claiming that this is such a small operation that the health insurance mandate wouldn’t apply. I will argue that this schedule could be used by Wal-Mart quite effectively. The new work week is only 3 and ½ days long.

Health care sounded like a great idea, but the end results are not the intended ones (full employment doesn't revolve around a 28 hour work week). Then on top of that, Congress wants to raise the minimum wage. It kind of makes sense, if you are getting the minimum wage now, the health insurance is free. Raise wages and the government will collect more taxes and you might not qualify for free medical. The 3 and 1/2 day work week should give everyone that wants a job, a shot at getting one. Problem solved!--- More money for working at a job you hate and less hours to boot.


dearieme said...

If you've got a 28 hour per week job, courtesy of Shambolicare, how easy would it be to coordinate it with another part time job, to bring your weekly earnings up to a figure you are happy with? Presumably easy for some and vexingly difficult for others?

I must say, making life more difficult for the working poor seems as awful an economic policy as I can think of.

Jim in San Marcos said...

Hi dearieme

I agree, the poor can now work two jobs and get absolutely no benefits.

I've never heard anyone accuse a politician of being intelligent. Everything that is wrong is always someone else's fault.

"Shambolicare" is cute, some others are calling it O'vomitcare.

Take care

Anonymous said...

While Obama jogs around the whitehouse for the Lets Move caimpain, Russia invades Ukraine. We are in real trouble. Obamacare may have been the best thing to happen to this country, because it could take the socialist democrat party. down with it.

dearieme said...

Maybe Obama reckons that if he can do his job in 28 hours per week that's all anyone else needs.

Rob in Nova Scotia said...

First of all Jim I want to thank you. I have been following your blog since almost the start I have occasionally posted on threads but usually I just read the content. Anyway your courage to write a blog has helped me to find fortitude to come forward with my story about a Coal Mine which I worked at a long time ago. Here is the backstory if you wish to read.

Thanks you have helped me. There maybe times when you wonder why you write a blog wondering if it will make a difference. Wel it has at least for me and hopefully the poeple of Nova Scotia.


Rob in Nova Scotia

p.s. maybe it's time for me to start a blog as well.


Jim in San Marcos said...

Hi Rob

Thank you for the Link. I hope things turn out OK for you.

If you need any help with your future blog you can always email me on the link on the front page.