74% Will Fire Workers and Cut Hours

In this article that appeared today in the Washington Examiner, sobering results from a nation-wide survey by the US Chamber of Commerce made it clear that the majority of small businesses in America are NOT going to be able to comply with government-mandated requirements to provide health care for all their employees, and still be able to stay in business.  So who takes the heat?...Well the employees do of course.  Even the tactic of delaying the implementation for a year is not going to change business-owner's minds about what needs to be done.  Have you talked with anyone lately whose life is being impacted by this?  They are out there! ...Dennis

74% of small businesses will fire workers, cut hours under Obamacare

Despite the administration's controversial decision to delay forcing companies to join Obamacare for a year, three-quarters of small businesses are still making plans to duck the costly law by firing workers, reducing hours of full-time staff, or shift many to part-time, according to a sobering survey released by the U.S. Chamber of Commerce.

"Small businesses expect the requirement to negatively impact their employees. Twenty-seven percent say they will cut hours to reduce full time employees, 24 percent will reduce hiring, and 23 percent plan to replace full time employees with part-time workers to avoid triggering the mandate," said the Chamber business survey provided to Secrets.

Under Obamacare, just 30 hours — not the nationally recognized 40 hours — is considered full-time. Companies with 50 full-time workers or more are required to provide health care, or pay a fine.

Dealing with Obamacare is the biggest worry of small businesses and comes as they continue to see a sluggish economy which has already put a brake on their hiring. Just 17 percent reported adding employees in the past two years. And only one-in-five small business owners believe that they will add employees in the next two years.

Other key findings from the Chamber survey:

— 77 percent continue to think the U.S. economy is on the wrong track. However, small businesses are more optimistic about their local economy and individual business.

— The majority (61 percent) of small businesses do not have plans to hire next year.

— Concerns about regulation have increased significantly from 35 percent last quarter to 42 percent now.

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