Tags: Healthcare Reform | forever | 21 | dropping | health | care

Fashion Retailer Cuts Employee Hours to Avoid Paying Health Care

Monday, 19 Aug 2013 12:53 PM


Employees of fashion retailer Forever 21 have fallen victim to Obamacare — the company has informed many workers that their hours are being cut to 29.5 a week, meaning they will not qualify for employer-sponsored health care insurance.

Obamacare's mandatory employer-provided insurance kicks in for employees who work at least 30 hours a week.

The Los Angeles-based company sent out the notice to non-management members of staff. The memo, from associate human resources director Carla Macias, was leaked on Facebook.

Macias said Forever 21 had "audited its staffing levels, staffing needs, and payroll in conjunction with reviewing its overall operating budget."

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It told those affected that their health coverage would end on August 31 and they would then be eligible for the government-sponsored COBRA program.

The company "naturally denies Obamacare inspired the decision," the American Thinker website reported.

Part-time workers will also not be able to earn paid time off under the new arrangement.

Company CEO Do Won Chang told CNN in September that Forever 21 was close to making $4 billion last year.


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