If you are a small business owner, you know how difficult it is becoming to earn a living. Rising costs of just about everything are making it virtually impossible for small businesses to stay afloat. The new healthcare law is one of the main issues that are raising operating costs for business owners. The increased costs of California small business medical insurance has some business owners searching for the most affordable options. Increases in minimum wage and paid sick leave and over time are really hitting businesses hard.
For example, Diana Lamon, owner of the restaurant, Poppy & Rose and food truck, Peachesâ€™ Smokehouse and Southern Kitchen in the LA area, states â€œWeâ€™re going beyond the point where we can comfortable operate a functioning business and meet the requirements of these laws.â€
Lamon and her husband Ryan face some major additional expenses due to recent changes in the health care and employee compensation laws. In July 2016, minimum wage will jump from $9 an hour to $10.50 and will reach as much as $15 an hour by the year 2020. Whatâ€™s more, they may be required to provide health insurance to their employees if they expand their restaurant as they had hoped. This leaves the Lamons in quite a dilemma. Do they chase after their dreams or scale back due to financial constraints?
Under a newly approved California law, employees are required to be given paid time off if they are sick. When you think about it, this means that either the employer risks trying to function short-staffed or they essentially pay a double salary; one for the sick employee and one for their replacement. Sounds crazy but itâ€™s a harsh reality that many California small business owners face every day with California small business medical insurance.
Many say that the hardships the Lamons face are just part of owning a business, and while that may be true, it doesnâ€™t ease the burden placed on these business owners, many of whom are looking for creative ways to cut costs. They have considered growing their own vegetables. This would save a considerable amount of money but would be an added burden with the planting and upkeep involved.
One way many business owners like the Lamons are saving money is by doing extensive research before deciding on which California small business medical insurance company to choose. All insurance companies are not created equal. When it comes to finding the best coverage for your business, you should take the time to ask the important questions. Will the company be able to provide affordable California small business medical insurance coverage with reputable providers? Are the agents well-informed and up to date on the newest laws, rules, and regulations? Is the company well-versed on tax laws and how certain plan options will affect your taxes? You donâ€™t want to get caught up in spending your time worrying about your employee health insurance policy when you have a business to run. Choosing a reputable insurance company will save you time and money and will get you back to doing what you love; running your business.