Denny’s Plans to Charge 5% ‘Obamacare Surcharge,’ Cut Workers Hours

Restaurant owner says 'it's the only alternative'

Florida restaurateur John Metz, who runs approximately 40 Denny’s and owns the Hurricane Grill & Wings franchise, told the Huffington Post he will offset Obamacare by adding a five percent surcharge to customers’ bills and reducing his employees’ hours.

Obamacare requires businesses or franchises with more than 50 workers to provide them all an insurance plan or to pay a penalty of $2,000 for each full-time worker over 30 workers. Obamacare also mandates that only employees working more than 30 hours a week are covered under their employers’ health insurance plan. So Metz plans to pass on the costs and Metz is not alone. Chains like Papa John’s, Olive Garden and Red Lobster are already considering reduced worker hours.

“Obviously, I’d love to cover all our employees,” Metz said. “But to pay $5,000 per employee would cost us $175,000 per restaurant and unfortunately, most of our restaurants don’t make $175,000 a year. I can’t afford it.”

Read more at The Daily Mail.

 

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