ACA: turning full-time jobs into part-time jobs
By Garett Jones
At least at some Red Lobsters:
The owner of Olive Garden and Red Lobster restaurants is putting more workers on part-time status in a test aimed at limiting the impact of looming health coverage requirements.
Mickey Kaus’s Monday prediction becomes Tuesday’s news.
No surprise here, basic microeconomics. Health coverage is complicated, especially for industries with high turnover. And that’s ignoring the financing of health insurance itself. The U.S. food service industry traditionally relies on flexible schedules, but this makes that flexibility more difficult.
Other things equal, this is bad for dynamism, for churn, for creative destruction.
As the Department of Labor says:
…nothing in the Affordable Care Act penalizes….large employers for choosing to limit their offer of coverage to full-time employees…
Acasclerosis, anyone? Say it loud: “Acka-skler-ohsis”