Workers Losing Hours, Wages Due to Affordable Care Act

Workers Losing Hours, Wages Due to Affordable Care Act

Low-Wage Employees Hurt Most by "Part-Time Nation"

(Washington, D.C.) – As the Affordable Care Act (also known as the ACA or Obamacare) comes closer to taking full effect, reports indicate the employers are trying to limit their exposure to new mandates by reducing their number of full time employees. Local governments are among those making the move, in order to save hundreds of thousands of dollars in new health care costs. According to a review of Bureau of Labor Statistics (BLS) data by the Investors Business Daily, "The workweek in low-wage industries has fallen back to the historic lows seen at the depths of the recession."

Given the extended weak economy and the lack of economic opportunity, the possibility of not finding full-time employment should be of major concern. While America has consistently generated more full-time jobs than part-time, we have started to see a changing trend towards a 30 hour work week as the new normal in "full-time" employment under the ACA. So far this year, four part-time jobs were created for each full-time job – a stunning reversal from long-established trends.

Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:

"Numbers don't lie. The average work hours of low-wage employees is now at a near record low, and full-time jobs are increasingly hard to find. While business owners are always forced to adapt to new government regulations in order to survive, something usually has to give. On January 1st, people will face steadily, increasing fines under the Affordable Care Act if they do not buy health insurance- whether they can afford it or not.

Meanwhile, employers that have more than fifty 'full-time' employees, including universities, hospitals, municipalities, small businesses – all sorts of job creators – are already trying to find  ways to avoid the burden of cost that the new regulations place on their budgets prior to implementation. Workers across America are discovering they can no longer work more than thirty hours per week or have been replaced by technology – partly because of the Affordable Care Act. This is one more reason that the President's health care law – while well intentioned – simply does not work." 

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.