Papa John’s CEO May Reduce Workers’ Hours Over Obamacare

After vowing to raise pizza prices earlier this year due to the affects of Obamacare, Papa John’s founder and CEO John Schnatter will reportedly reduce the working hours of the pizza chain’s stores as costs of healthcare reform are passed on.

The Naples News reports Schnatter:

…was not “pro or against” the reform law but likened the government's involvement in health care to its operation of the U.S. Postal Service, saying “the worst entity in the world for running the thing is the government.”

Schnatter said it was likely that some franchise owners would reduce employees’ hours in order to avoid having to cover them.

“That’s probably what’s going to happen,” he said. “It’s common sense. That’s what I call lose-lose.”

About a third of Papa John’s employees are covered by the company's health insurance plan, although Schnatter said he has always wanted 100 percent of them on the plan. The rising costs of health insurance, he said, have been a deterrent.

“The good news is 100 percent of the population is going to have health insurance. We’re all going to pay for it,” he said, estimating the new law would cost the business $5 million to $8 million annually. 

The Affordable Care Act requires employees working 30 hours or more per week – considered full-time – to be provided with insurance at companies with 50  or more employees.

In August, Schnatter, who was a fundraiser and supporter of Mitt Romney also made headlines when he said that Obamacare would raise prices of his pizza 10-14 cents per pie, which would be passed along to consumers.