More full-time workers bumped to part-time
POSTED: Monday, July 15, 2013 - 6:10pm
UPDATED: Thursday, July 25, 2013 - 3:09pm
Tyler, Texas (KETK) — The Obama Administration is putting off the employer mandate to insure employees for another year.
Under Obamacare, full-time employees must be insured, and that could lead to more workers being bumped to part-time.
"The new IRS Math will take X number of part-time employees and turn them into full-time employees," says Bob Westbrook, Chairman of Tyler Chamber of Commerce and CiCi's Franchisee.
Westbrook says, it's 10,000 pages of confusion which will impact the ability of Texas business to expand by adding more full-time staff.
The Employer Coverage Mandate under Obamacare has been delayed until 2015.
The federal government requires employers with at least 50 full-time workers to offer affordable insurance to employees working 30-hours or face penalties.
Tom Mullins, President & CEO of Tyler Economic Development Council says he doesn't feel employers can afford to pay require insurance levels.
"So if they are 30 hours or more they are considered a full time equivalent employee if they are 29 hours or less they are considered to a part-time employee," says Westbrook.
Experts say, it's putting a lot of pressure employers in every industry.
Westbrook is a franchise owner of CiCi's Pizza, he owned two in Tyler and retained the store in Longview.
"That's the reason why I sold my two stores is because the Affordable Health Care Act," says Westbrook.
He adds, "We knew we had a decision to make and that decision came very swiftly and quickly, when we sold two of our CiCi's pizza's here in Tyler and we retained the one in Longview but that got us under the 50 employees."
Westbrook says, if employees aren't insured, employers could face more than $2,000 in penalties for each employee.