Employers of low wage workers are cutting work weeks as Obamacare implementation comes closer, according to Investors Business Daily.
Workweeks have shrunk over the last 18 months for 30 million workers in industries where non supervisors make about $14.50 an hour or less. Analysts say that employers are cutting hours for low wage workers to avoid penalties required by Obamacare. According to Business Daily:
As a whole, low-wage industry groups added just shy of 1 million jobs in the 18 months through June, but total hours worked grew one-third slower than payrolls over that span. In effect, the shorter workweek in low-wage industries boosted payrolls by 320,000.
For a profit-making firm facing a 40% federal and state tax rate, the $3,000 annual, nondeductible fine employers may face for each worker who accesses ObamaCare subsidies is equal to $5,000 in deductible wages.
Thus, for a worker earning $15,000 in compensation, ObamaCare could raise an employer’s cost by one-third.