Starbucks won't cut benefits ahead of Obamacare: CEO

Some employers keeping staff numbers below 50, cutting workweek
By Atossa Araxia Abrahamian
|hrreporter.com|Last Updated: 08/28/2013

NEW YORK (Reuters) — Starbucks Coffee will not follow the lead of other companies that are cutting health insurance benefits or reducing hours for employees in anticipation of the United States Affordable Care Act, the coffee shop chain's CEO Howard Schultz told Reuters.

"Other companies have announced that they won't provide coverage for spouses; others are lobbying for the cutoff to be at 40 hours. But Starbucks will continue maintaining benefits for partners and won't use the new law as excuse to cut benefits or lower benefits for its workers," Schultz said in a telephone interview.

The 2010 health-care reform law, often called Obamacare, requires companies with more than 50 employees to offer health insurance for employees who work 30 hours a week or more. Starbucks currently provides health care to part-timers who work 20 hours a week or more.

Last week, United Parcel Service told non-union employees that their spouses would no longer qualify for company-sponsored health insurance if they could get coverage through their own jobs.

According to a survey released in March by consultant Towers Watson and the National Business Group on Health, four per cent of large employers excluded spouses from their health plan in 2013 if they could buy coverage where they work, and eight per cent more planned to do so for 2014.

Last week, Reuters reported that some businesses are keeping staffing numbers below 50 or cutting the workweek to less than 30 hours to avoid providing employee health insurance.

Add Comment

  • *
  • *
  • *
  • *