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7/12/2010 - New Healthcare Plan Serves Restaurants A Sickening PlatefulFor generations restaurants have been a place for entry level workers to get some work experience. Experienced waiters earn tips to supplement their base pay which is usually close to minimum wage. But well known chains such as White Castle and IHOP see trouble in a year and a half as they try to calculate the changes caused by the new healthcare bill. To pay for the costs, and or penalties, White Castle says a single provision will eat up roughly 55% of its annual income. Starting in 2012, the bill levies a $3,000-per-employee penalty on companies whose workers pay more than 9.5 percent of household income in premiums for company-provided insurance. Company spokesman Jamie Richardson, says it will b difficult for the company and its 421 restaurants to keep people let alone crate any new jobs. IHOP’s George Ebinger of New Jersey, who owns several franchises, says the penalty for not insuring his 140 workers will cost roughly half as much as insuring them. He expects to increase prices and possibly layoff workers to cover the heavy price of $220,000. Its still early, and all the rules are not even written yet, but the costs based on these two large restaurateurs will be difficult, so much so that radical adjustments will be required to maintain a profit. Without profit, loans can’t be paid off, raises can not happen, and new investment or hires will be a long way off.
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