Wednesday, March 24, 2010

On the Tab: Food, Drinks & Health Care

by: Claudia Cowan

"One of the provisions in the new health care law requires small businesses to provide coverage for workers. Such an "employer mandate" has been in place in San Francisco, Calif., for over a year. The mandate has earned mixed reviews at best.

Under the law, businesses with 20 or more employees are required to provide medical coverage, either on their own or by paying into a city-run program. That's what most restaurants are doing -- albeit grudgingly.

To cover the cost, owners are either having to raise their menu prices or tack on a so-called "Healthy Surcharge" onto the tab. At some places, it's around 4 percent of the check. Others charge a flat fee of a dollar or two.

Either way, customers are footing the bill for the health care of their waitstaff, busboys, and cooks, regardless of whether the workers work part time, live in San Francisco, or are in the U.S. legally."

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