Report: Trader Joe’s to cut insurance for some part-time workers

Trader Joe’s has told workers who work fewer than 30 hours a week that they will need to find insurance next year on the new insurance exchanges being set up under the Affordable Care Act, the Huffington Post reported, citing a confidential memo from the grocer’s chief executive.

In the memo to staff dated Aug. 30, Trader Joe’s CEO Dan Bane said the company will cut part-timers a check for $500 in January and help guide them toward finding a new plan under the Affordable Care Act, the HuffPost reported. The company will continue to offer health coverage to workers who carry 30 hours or more on average.

The law mandates that companies with 50 employees or more offer coverage to such full-time employees, though the Obama administration has chosen to delay that rule for a year.

“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,” Bane wrote in the memo.

The company told HuffPost it would not confirm or deny the existence of the memo. In a statement, a spokeswoman said, “We have made some changes to our healthcare coverage that we believe will be a benefit to all Crew Members working in our stores. We are committed to providing all our Crew Members with benefits that are among the best in our industry.”

Trader Joe’s operates a store in the Town and Country Shopping Center in Kettering.