Business As Usual: Starbucks Not Cutting Hours Due To Obamacare

August 30, 2013  |  

Unlike UPS, which, as we reported, will cut health coverage for some employee spouses as a reaction to Obamacare, Starbucks Coffee Co. says it won’t make any major changes in the policy goes into effect.

The popular coffee shop chain’s CEO Howard Schultz told Reuters that it will not follow the lead of other companies and cut  health insurance benefits or reduce hours for employees in anticipation of the U.S. Affordable Care Act, reports The Huffington Post.

Under the 2010 healthcare reform law, aka Obamacare, companies with more than 50 employees must offer health insurance for employees who work 30 hours a week or more. Starbucks currently also provides healthcare to part-timers who work 20 hours a week or more.

“Other companies have announced that they won’t provide coverage for spouses; others are lobbying for the cut-off to be at 40 hours. But Starbucks will continue maintaining benefits for partners and won’t use the new law as excuse to cut benefits or lower benefits for its workers,” Schultz told HuffPo in a telephone interview.

Many other companies are making drastic changes. “Last week, Reuters reported that some businesses are keeping staffing numbers below 50 or cutting the work week to less than 30 hours to avoid providing employee health insurance,” reports HuffPo.

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