How Health Care Reform May Affect Franchise Organizations

November 30, 2012

In a recent issue of Nation’s Restaurant News, two key components of the Patient Protection and Affordable Care Act (PPACA)—also known as Obamacare—which are creating anxiety for retail, restaurant and other franchise businesses that have many part-time employees, were discussed.

  • The requirement for 50 full time equivalent employees
  • The reduction in full time equivalency down to 30 hours a week

Prior to the January 2014 implementation date, businesses must track the average hours worked by each employee, which will be the determination of their status as full-time or part-time. Accordingly, in advance of this change in 2014, many businesses are starting to review and adjust the hours worked by employees. On the other hand, other business owners realize that, even with part-time employees, they may have to offer some health care alternatives to keep their best employees.

Whether you cut hours or jump fully on board with the PPACA, the message here is to not wait until 2014 to make these changes. It will be too late by then. Start measuring and planning today for the health care reform changes ahead.

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