Starbucks Won’t Cut Workers’ Hours to Dodge Obamacare

By on

While some restaurant chains, including Papa John’s and Olive Garden, last year sputtered over the requirements of Obamacare, Starbucks’ response is: So?

“Other companies have announced that they won’t provide coverage for spouses; others are lobbying for the cut-off to be at 40 hours. But Starbucks will continue maintaining benefits for partners and won’t use the new law as excuse to cut benefits or lower benefits for its workers,” CEO Howard Schultz told Reuters.

The law requires large companies — meaning those with more than 50 employees — to offer health insurance to employees who work at least 30 hours a week. Businesses that weren’t already doing that have to figure out how to deal with the new expense, and some are choosing to do it by dodging the requirement altogether by shortening workers’ hours.

Meanwhile, UPS recently decided to drop health care coverage for some employee spouses, and blames Obamacare for the move.

That’s all despite the fact that the nonpartisan Congressional Budget Office projected that health care reform would have a negligible effect on premiums for large employers, Kaiser Health News says.

Starbucks already provides health care to part-timers, and doesn’t plan to change that, Reuters says.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,070 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.

  • SniqueAway

    Starbucks is able to provide insurance coverage to employees because of profits derived from the sale of outrageously expensive beverages and food products.

  • chapp

    Starbucks obviously can’t do math.