October 3, 2013

Disneyworld

Here's some nice news for a change. If you watch the news you'd only think that companies are cutting workers hours to avoid covering their health insurance, but that's not so. Disney World is doing the right thing and then some for its employees:

Walt Disney Co. announced on Wednesday that it is offering full-time employment to the 427 part-time employees at its Disney World theme park in Orlando, Florida who work at least 30 hours per week — the threshold at which the Affordable Care Act requires large employers with 50 or more workers to offer basic health benefits to employees or risk paying a $2,000 per employee fine after the first 30 workers.

Disney already offers a level of health coverage that is acceptable under Obamacare to its full-time employees. But part-time workers, including those who work at the 30-hour cutoff set by the health law, receive more limited benefits. Instead of rolling back these workers’ hours to avoid expanding their health coverage, Disney is choosing to promote them to full-time status.

“Disney wants to be proactive,” said Ed Chambers, president of the Service Trades Council union that represents tens of thousands of Orlando Disney employees, in an interview with Bloomberg News. “Disney is way out in front on this.”

That’s a striking departure from some retail and service sector firms that have used Obamacare’s employee coverage requirement as an excuse to cut hours and benefits. While the vast majority of firms are not engaging in such tactics, high-profile stories about companies that do adopt that approach tend to dominate media coverage.

In fact, Disney’s decision tracks with a recent survey of chief financial officers at large American firms finding that American companies actually intend to increase their number of full-time employees by almost 2 percent over the next year, despite repeated claims by Obamacare critics that the reform law will create a part-time economy, discourage hiring, or encourage employers to roll back workers’ hours to avoid Obamacare.

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