Royal Farms, a Baltimore, Md.-based chain with about 150 stores in mid-Atlantic states, is responding to the national health care reform mandate known as “Obamacare” by reducing its full-time and part-time workers to less than 30 hours a week, the Huffington Post reported.
Employees of the company told the Huffington Post that managers informed workers last month during a staff meeting that the company was transitioning to an almost entirely part-time workforce in reaction to Obamacare. The mandate requires that companies with more than 50 workers provide insurance benefits to all employees working more than 30 hours a week by 2014 or pay penalties.
In response, frustrated employees have been quitting and skipping out on shifts since the announcement, one employee told the Huffington Post.
Royal Farms is not alone, as several major employers have publicly announced they aim to cut hours to avoid having to pay for the costs of insurance benefits.