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Regal Entertainment Group, which operates Regal Cinemas and United Artists Theatres in metro Atlanta and has more than 6,800 theaters across the country, plans to cut the hours of thousands of employees to avoid having to provide costly health care insurance coverage under Obamacare, according to a company memo obtained by Fox News.
Non-salaried workers will be made part-timers, putting them below the average 30-hour-a-week threshold where employers must provide health insurance under the under the Affordable Care Act or face a possible penalty, according to Fox’s report.
REG is joining other companies that have announced plans to either cut workers or their hours to avoid facing increased health care costs under Obamacare. Starting in 2014, some businesses with 50 or more full-time or full-time equivalent employees that do not offer health coverage to those employees may face penalties. A full-time employee for the purposes of Obamacare is one who is employed an average of at least 30 hours per week.
The network quoted the following from the REG memo:
“To comply with the Affordable Care Act, Regal had to increase our health care budget to cover those newly deemed eligible based on the law’s definition of a full-time employee, To manage this budget, all other employees will be scheduled in accord with business needs and in a manner that will not negatively impact our health care budget.”
Efforts were being made to reach REG or comment. In addition to Regal Cinemas, REG operates Edwards Theatres.