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Home Publications Blogs CEPR Blog CEO: We Offer Either a Very Skimpy Health Benefit, or Possibly None at All

CEO: We Offer Either a Very Skimpy Health Benefit, or Possibly None at All

Thursday, 18 August 2011 11:10

According to a video posted over at the Heritage Foundation, CEO Andy Puzder of CKE Restaurants testified, "with franchisees in the United States we employ about 70,000 people." [13:50] What's truly fascinating about this is that "the ACA [Affordable Care Act] will increase our health care costs approximately $18 million per year ... That's a 150 percent increase from the $12 million we spent on health care last year." [17:06]

Apparently, CKE spent on health care less than $15 per employee per month last year. Either the health care benefit was amazingly skimpy, or very few CKE employees received it. Regardless, if everyone at CKE were part-time minimum-wage workers, that would imply total wages of more than half a billion dollars annually. Including health care costs, an extra $18 million would imply a raise of less than 3.5 percent. The minimum wage, by contrast, has fallen in real terms by 5.5 percent since it was last raised in July 2009.

Comments (2)Add Comment
and also some poor arithmetic
written by Dom, August 18, 2011 3:03
$18m is not a 150% increase on $12m either. A small point, and surely only a mistake from Mr Puzder.
written by David Rosnick, August 18, 2011 3:35
Actually, that math is correct. He claimed an $18 million increase, or $30 million total. I cannot vouch for his figures. Nor did I catch him saying over how long a period of time that increase took place. But that does come to 150 percent.

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