When Mary Miller, CEO of Cincinnati’s Jancoa Janitorial Services, testified July 10 before the House Committee on Oversight and Government Reform, her message was clear: The federal healthcare law would force her and her husband “to choose between several impossible options in order to remain in business.” The options: either increase premiums for her 320 full-time employees, cease coverage and pay a more than $600,000 penalty, or downgrade workers to part-time status.
So far, the company hasn’t had layoffs and can operate until 2014 without incurring penalties. But other companies, especially larger companies, are taking preemptive steps to avoid the impact of the healthcare law.
The law requires employers to provide health insurance for employees working more than 30 hours a week. So grocery retailer Kroger, with more than 350,000 employees, said it will limit part-time employees to 28 hours...