Business & Tech
Trader Joe's Kicks Part-Timers Off Health Plan, Blames Obamacare in Memo
In a memo obtained by the Huffington Post, the grocery chain said it will give workers $500 to help find a plan under Obamacare's coverage exchanges.
This story was reported by Roberto Scalese.
Trader Joe's, the grocer once lauded for providing health care coverage to its part-time workers, is about to push those employees off its insurance plan.
According to a memo obtained by the Huffington Post, the company will stop covering employees who work less than 30 hours per week.
The change is set for the start of 2014. Instead of insurance, workers instead will get a check for $500 come January.
"Depending on income you may earn outside of Trader Joe's, we believe that with the $500 from Trader Joe's and the tax credits available under the ACA, many of you should be able to obtain health care coverage at very little if any net cost to you," said Trader Joe CEO Dan Bane in the memo.
Companies with more than 50 employees are required to provide health insurance under Obamacare. Trader Joe's full-time staff will still get their company-based insurance. It's just the part-timers who are getting booted from the plan.
Trader Joe's operates several stores in Massachusetts, including in Peabody at 300 Andover St.
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