First, Happy Birthday to my favorite daughter-in-law Shelby. May your day be special. I think she is slightly older than 29.
“29ers'” is a term you will hear more and more. The new Obamacare rules require companies with more than 50 full time employees to offer a medical insurance plan or pay a $2,000 fine. The operative word is “full-time”. Obamacare defines a full time employee as anyone who works 30 hours a week. So what are small employers (McDonalds, Hardees, Taco Bell) going to do. They will cap employee hours at 29 to avoid paying $2,000 fines. Hence the term 29ers’. If you are a 29er, you are condemned to live a life of limited work hours.
There are rules. A full time equivalent employee must work 30 hours or more. Equivalent means two 15 hour employees performing a job could be considered full time. Tricky! The 50th employee hired by a McDonalds triggers all kinds of penalties such as McDonalds having to pay a $2,000 penalty on every employee over 30 in number. You get the idea. Getting to be a full time employee is going to get difficult for both the employee and the employer.
So if you need a job and are willing to work at a fast food restaurant, plan on 29 hours or less a week. Your alternatives are to get another part time job at a different fast food restaurant and work 20-25 hours at each place. You will not get medical insurance coverage at either place.
The medical insurance game has already begun although penalties don’t kick in until 2014. The hiring practices of 2013 will be used to determine the $2,000 penalties imposed next year.
It seems to me that the process of getting people to “full time” status just got harder. Then again what do I know. Thank goodness we have government to guide us.
Here is hoping you or somebody you know don’t get thrust into 29er status.
Love,
Dad