School districts consider cutting employee hours, prompted by Obamacare

Is Obamacare forcing employers to cut employee hours?

It's a question being asked now that people can enroll.

Some school districts are cutting back on employee hours and others are reserving the right to do so if they need to cut costs in the future.

At John Glenn Schools administrators decided to cut hours for 10 to 15 employees.

The superintendent says the decision was made before the school year started.

By law under the Affordable Care Act, people who work 30 hours or more are considered full-time and their employers must offer benefits.

At John Glenn that was a cost the district couldn't afford.

“If you know the law anybody that is going to be over 30 hours or more, they must be offered healthcare and we could not afford to offer healthcare to that many additional folks,” says Superintendent Richard Reese from John Glenn Schools. “So the only alternative we had was to cut hours from 34,33 to 28,29, 27 in that range.”
John Glenn certainly isn't alone.

Tuesday night Mishawaka's Superintendent told the school board that 350 employees would have to cut their hours from 30 to 28 hours or lower.

Also South Bend Schools are evaluating their benefits and costs.

Right now most employees that work only 20 hours a week are eligible for health care.

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