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AutoZone Warns Obamacare Will Have 'Significant, Negative Impact on Business'
Thursday, 25 October 2012 13:12
Written by Chuck Justice
Earlier this month, Darden Restaurants, the dining giant behind the Olive Garden, Red Lobster and LongHorn Steakhouse, announced that Obamacare was forcing the company to cut full time positions to deal with the costly law. It's only going to be a matter of time before more companies stop being scared of threats from the Obama administration and start speaking out about how devastating the law is. On Tuesday, auto parts giant AutoZone added their voice, stating that Obamacare will have significant, negative effects on their business.
From The Daily Caller:
On Tuesday, Autozone joined the growing list of companies publicly warning about the negative effects of Obamacare, according to the company’s annual report.
In assessing risk factors that could affect the auto supply chain store, the Autozone report references President Barack Obama’s signature legislation: “While the significant costs of the recent healthcare legislation enacted will occur after 2013 due to provisions of the legislation being phased in over time, changes to our healthcare costs structure could have a significant, negative impact on our business.”
The company employs 70,000 employees nationwide, about 40,000 of which are full time. However, some of these full time employees could potentially be moved to part-time status in an effort to limit the costs associated with Obamacare. Beginning Jan. 1, 2014, employers face fines of up to $3,000 per employee if they do not provide basic care coverage to full time employees and their dependents.
This could significantly boost labor costs, requiring companies to begin deciding now between reducing hours or eliminating staff in anticipation of future increased operating costs.
Earlier this month, it was revealed that Darden Restaurants Inc., the owner of popular Rchain restaurants such as Olive Garden and Red Lobster, would be transitioning employees in at least four markets into part-time status in an effort to evaluate how to limit healthcare costs in advance of Obamacare.
With this happening to major companies, imagine the impact Obamacare has on small businesses? This devastating law is the biggest barrier to America's economic recovery - and it was passed to control every aspect of the individual by the federal government.
Chuck Justice is the editor-in-chief for Habledash.