Bracing For Obamacare In 2014

By Matt Pillar, editor in chief

I’ve often commented on how mandates create headaches for retailers but business opportunities for technology vendors. The PPACA, otherwise known as Obamacare, is no exception. Workforce management software providers are the sole winners in retail, where variable labor schedules will create more management complexity and risk of noncompliance than that faced by most industries.

Beginning January 1, 2014, Obamacare will impose a $2,000 per employee penalty on employers with more than 50 employees who do not offer health insurance to their full-time workers. A full-time employee is defined under the act as an employee who works 30 hours per week, per month, on average. That can create a twisted math problem for retailers and restaurants that manage highly variable schedules. As a result of this and myriad other complexities pertaining to the law, 46% of retail and hospitality employers said they need to take action now to avoid penalties next year, according to a recent Mercer survey. That contrasts with only 16% of companies in the financial services industry who expressed the same concern. Those who employ many low-paid, part-time employees are bracing for a sharper increase in healthcare costs than those who employ mainly high-income, full-time workers.

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