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Here is more negative fallout to report from Obamacare.
Many people are now being hired as contract employees. Contract employees have to cover their own healthcare costs.
Local governments cutting hours over Obamacare costs
The decisions to cut employee hours come 16 months before employers — including state and local governments — will be required to offer health-care coverage to employees who work at least 30 hours a week. Some local officials said the cuts are happening now either because of labor contracts that must be negotiated in advance, or because the local governments worry that employees who work at least 30 hours in the months leading up to the January 2015 implementation date would need to be included in their health-care plans.
On Tuesday, Middletown Township, N.J. said it would reduce the hours of 25 part-time workers to avoid up to $775,000 in increased annual health-care costs. Earlier this month, Bee County, Tex., said it would limit its part-time workers to 24 hours per week when the new fiscal year starts Oct. 1.
Last month, department heads in Brevard County, Fla., were told to plan similar cuts in advance of the 2015 deadline. Brevard County Insurance Director Jerry Visco estimated the new mandate would cost the county $10,000 per part-time employee — or $1.38 million a year if all 138 part-time employees who work more than 30 hours a week are covered, he told Florida Today. The Brevard County libraries have already cut hours for 37 employees.
Middletown spends about $9 million a year, out of its $65 million budget, on employee health policies, Mercantante said.