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Executives say move to avoid health care costs led to high turnover
Worried about the impact of higher health care costs due to the Affordable Care Act, the owner of Fox & Hound and Champps restaurants converted nearly all of their employees to part time. The move backfired, according to court documents, and helped lead to the company’s bankruptcy this week.
The company, Last Call Guarantor LLC, said in a court filing this week that the shift to part-time led many workers to find other jobs. “High turnover results in higher labor costs,” the company said, forcing it to spend additional resources to find and train new workers.
The shift of workers to part time is among a series of failed moves and industry challenges that Last Call described in court documents as contributing to the company’s second bankrup...
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