Businesses in these low-wage-earning industries experience stronger financial effects of the employer mandate because health insurance represents and vast portion of their total employee costs, according to the report.
Citing a National Federation of Independent Business survey of 900 firms with fewer than 100 employees, 42 percent reported their health plan costs have grown by at least 10 percent this year. Consequently, 37 percent are delaying or postponing investment and 26 percent are freezing or reducing wages.
Many restaurants are refraining from increasing the hours of part-time employees to 30 hours or more, and are only offering such increases to top-performing workers, according to Michelle Neblett, senior director of labor and workforce policy for the National Restaurant Association.
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