Franchise News

Trader Joes' Part-Time Workers Lose Health Care Coverage, 'My Reaction Was Pure Panic, Followed Quickly By Anger'

Sep 12, 2013 11:19 AM EDT | By Justin Stock

Trader Joes part-time employees will no longer receive health care coverage next year.

According to a memo obtained by The Huffington Post, employees who work less than 30 hours a week will not be covered.

Trader Joe's CEO Dan Bane told The Post the employees will have to find coverage through new health insurance exchanges. Affected workers will also be given a check for $500 in January, and be provided help with finding a new plan under the Affordable Care Act.

"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 said in the memo, according to The Post. "It is important to note ... we do not create our weekly schedules with healthcare eligibility in mind. Rather, we will continue to create weekly schedules that are solely focused on supporting the customer experience."

Although the company is trying to help the part-time workers with the new changes, it has proven to be a burden with those already in tight situations as one Trader Joe's employee told The Post.

"I can say that when I opened and read the letter yesterday my reaction was pure panic, followed quickly by anger," an employee said.

According to The Post, Trader Joe's did not verify whether a memo was actually sent internally throughout the company informing employees of the changes. A Trader Joe's spokeswoman said the company has adjusted its health coverage in a way that will be effective for all.

"We have made some changes to our healthcare coverage that we believe will be a benefit to all Crew Members working in our stores," the spokeswoman said. "We are committed to providing all our Crew Members with benefits that are among the best in our industry."

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