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Thursday, Nov 15, 2012 9:17 PM UTC

Denny’s to offset Obamacare costs by cutting worker hours

A Florida franchise of the restaurant is among a number of chains cutting labor costs

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Topics: Labor Rights, Fast food, Labor, Obamacare, Affordable Care Act, healthcare, Denny's, ,

Denny's to offset Obamacare costs by cutting worker hours (Credit: Wikimedia)

In order to offset the costs of the Affordable Care Act, a chain of Denny’s restaurants plans reduce employees’ hours. The Mail Online reported Thursday that Florida-based restaurant owner John Metz, who runs approximately 40 Denny’s and owns the Hurricane Grill & Wings franchise, will cut workers’ hours in advance of Obamacare’s full implementation in January 2014.

“It’s going to force my employees to go out and get a second job,” Metz admitted to the Mail, saying he felt he had no choice.

Metz has also considered adding a 5 percent surcharge to customer bills, but has no plans to implement this idea.

Salon reported earlier this year on other restaurant chains seeking ways to offset Affordable Care Act costs. Papa John’s, Red Lobster and Olive Garden all plan to rely increasingly on part-time workers. A recent study by the Urban Institute found that the law’s provisions would increase large businesses’ overall spending by 4.3 percent. However, the director of Restaurant Opportunities Centers (ROC) United, Sarah Jayaraman told MSNBC earlier this year that she believed some restaurant owners were using the excuse of Obamacare to cut back on labor costs.

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Natasha Lennard is an assistant news editor at Salon, covering non-electoral politics, general news and rabble-rousing. Follow her on Twitter @natashalennard, email nlennard@salon.com. More Natasha Lennard.

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