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Health Reform Will Have a Major Impact on the Restaurant Industry

employee2Over 12.9. million Americans work in the restaurant industry, making it one of the largest private-sector employers in the country. The term “food-service” industry casts a wide net, covering little corner coffee shops, five star establishments with celebrity chefs and everything in between. No matter how meek or lavish a restaurant may be, their employees often share a common experience – no health insurance coverage.

A recent report put out by the Food Chain Workers Alliance (FCWA) revealed some facts that might be surprising to anyone who has never worked in a restaurant.

  • 79 percent don’t have paid sick leave – or don’t know if they do
  • 83 percent don’t get health insurance from their employer
  • 58 percent don’t have health care at all
  • 53 percent worked while they were sick
  • 35 percent have used the emergency room as their primary care

As you can see, restaurant workers are often being hit with a double whammy when they get sick. Not only do they have to pay for out-of-pocket for health care, but they are not compensated for the days of work they miss.

Here are some ways that health reform will be impacting millions of restaurant workers:

  • Larger restaurants (50 or more employees) will be required by law to offer health insurance for their workers or pay a penalty.
  • Smaller restaurants will not be required to offer health insurance. However, if they choose to, they will receive a handsome small business tax credit.
  • Either way, restaurant workers will have access to
    individual health insurance coverage
    . Even if their employer does offer coverage, they can choose not to participate and seek out their own plan.
  • Health Care Reform, Individual Health Insurance, Politics and Legislation