Before Sumir Meghani and Saureen Shah became Google engineers, they dipped their toes into much smaller ventures. Meghani was raised by two small business owners, and Shah used to be a McDonald's cashier.
19% of Small Businesses Reduced Employees Because of Obamacare
CNBC asks and answers the question Will Obamacare Hurt Jobs? It's Already Happening, Poll Finds
Small business owners' fear of the effect of the new health-care reform law on their bottom line is prompting many to hold off on hiring and even to shed jobs in some cases, a recent poll found.
David Leonhardt delivers some bad news from the jobs report:
Businesses may be getting more confident, but they are far from wildly optimistic. The average work week in the private sector remained 34.3 hours in April, unchanged over the past three months. If businesses were on the verge of a hiring boom, an increase in the work week would be a leading indicator (given that companies often give their existing employees more work before adding new ones).
Wal-Mart Stores Inc., in the midst of spending US$1 billion to raise employees’ wages and give them extra training, has been cutting the number of hours some of them work in a bid to keep costs in check.
Regional executives told store managers at the retailer’s annual holiday planning meeting this month to rein in expenses by cutting worker hours they’ve added beyond those allocated to them based on sales projections.
In hopes of reducing the impact of Obamacare, Olive Garden and Red Lobster are reducing hours and studying the impact.
Right now, this is just a small test, involving only four stores. However, if large chains are testing in that direction, no doubt other companies are doing the same. I also suspect smaller chains have already shifted to that model completely.