Papa John’s CEO: Obamacare Forcing Us To Cut Employee Hours

By Amir Khan on November 10, 2012 11:49 AM EST

Papa John's
Papa John's (Photo: Creative Commons)

The Affordable Care Act, dubbed "Obamacare" by the opposition, was one of the most controversial aspects of President Obama's first term and stands to be front and center during his second term as well. In the wake of President Obama's reelection, Papa John's CEO John Schnatter, who has opposed to Obamacare, said he will be passing on the higher healthcare costs to his workers.

Papa John's CEO John Schnatter, who made headlines over the summer when he said Obamacare will cause the price of his pizza to increase by 11 to 14 cents, said he will have to reduce the hours of his workers to compensate for the increased costs of Obamacare, according to the Naples News.

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"I got in a bunch of trouble for this," he told the Naples News.   "That's what you do, is you pass on costs. Unfortunately, I don't think people know what they're going to pay for this."

Schnatter said he is neither for nor opposed to Obamacare, but said he is simply trying to run his business. Approximately a third of Papa John's employees are covered by the company's insurance, but while Schnatter said his goal is 100 percent coverage, the rising costs make that prohibitively expensive.

"The good news is 100 percent of the population is going to have health insurance," he said, according to the Huffington Post. "We're all going to pay for it."

Under Obamacare, full-time employees -- those working 30 hours per week or more -- would have to be provided with insurance. Schnatter said by cutting hours, franchise owners would not have to provide their employees with coverage.

"That's probably what's going to happen," he said. "It's common sense. That's what I call lose-lose." 

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