Local Governments Cutting Hours Over Obamacare Costs

By Ray Pinard | September 4, 2013

An interesting article by Reid Wilson, first published in the Washington Post, and republished on the Friends of the U.S. Chamber of Commerce website.

Many cash-strapped cities and counties facing the prospect of shelling out hundreds of thousands of dollars in new health-care costs under the Affordable Care Act are opting instead to reduce the number of hours their part-time employees work.

The decisions to cut employee hours come 16 months before employers — including state and local governments — will be required to offer health care coverage to employees who work at least 30 hours a week. Some local officials said the cuts are happening now either because of labor contracts that must be negotiated in advance, or because the local governments worry that employees who work at least 30 hours in the months leading up to the January 2015 implementation date would need to be included in their health-care plans.

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