The Rachel Maddow Show   |  December 06, 2012

Restaurant chain bites off more politics than diners will chew

Ezra Klein reports on how Darden Restaurants, including Olive Garden and Red Lobster, saw their bottom line suffer after threatening to cut workers' hours to avoid giving benefits under Obamacare.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> do you remember what republicans called their bill to repeal obama care? i do. it was an act to repeal the job killing health care law . now, the whole job killing thing has always been a bit of a talking point myth. a nonport dan study of the very similar health insurance mandate enacted six years in massachusetts showed, quote, no evidence of reduced employment as a result of health reform there. still, that argument, the whole job killing obama care thing, sent the owner of red lobster and a bunch of other very carb friendly restaurant chains on a hapless misadventure in corporate protest that culminated today in a public and embarrassing and informative way. back in october, company called darden restaurants announced they were putting more workers on part-time status in stead of full-time to see if they would be able to limit the cost of complying with the new health reform law. under the new law, big companies like darden have to either offer health insurance or pay a $2,000 fine for each full-time employee. over 30 employees who ends up using public subsidies to buy health care . you catch those words there, though? full-time employees or their equivalent. so the thinking went, if you have fewer full-time employees, that equals less money spent on health coverage would equal profit. thus began darden restaurants in trying to dodge obama care. the schemes are kind of unpopular in america. this week the company to lower its earning estimate for next year in part because of the bad press they got for health reform shenanigans. people aren't going for dinner special. 2 for $25 olive garden dinners are not a good enough deal in post recession america. today was the end of the line if health reform dodging. their test in using fewer full time employees, it was a fail. according to the ap's reporting it received a flood of feedback from customers. both employee and customers. turns out everyone is happier when you have healthy full time workers who are not sneezing on your food. the story of the restaurants is a funny story. there is a reason that employers give them health insurance . it is because they need them to be happy and to be healthy and they need people to want to work there. one of the big policy arguments is that once it is fully implemented they will drop the coverage and pay the fine. but do you know what they pay now? nothing. no fine, no penalty at all. and yet, most provide the health care anyway. we have seen how it goes. it is $295 per employee per year. way less than the $2,000 that you would pay under obamacare. it didn't happen. in fact, since statewide health reform was there, it offers health insurance in the country as a whole. do you you know what kills businesses and jobs? it is losing your workers and getting a reputation as a terrible employer with terrible service and breadsticks handled by sick people. try