Target Is Newest Retailer to Drop Part-Time Health Coverage
The retailing giant follows Trader Joe's and The Home Depot example, while facing company layoffs and lingering concerns following December's security breach.
In the news, retailing giant Target just can't seem to catch a break.
Target announced this week that it will stop providing health care coverage for part-time employees who work less than 32 hours a week beginning April 1. Instead, the workers no longer under the company plan will receive a single $500 cash payment and benefits counseling.
Some 360,000 people, or about 10 percent of Target employees, participate in the part-time plan that is offered.
In a blog post on the company website, Target's Executive Vice President of Human Resources Jodee Kozlak said of the changes, "our decision to discontinue this benefit comes after careful consideration of the impact to our stores' part-time team members and to Target, the new options available for our part-time team, and the historically low number of team members who elected to enroll in the part-time plan."
Related: 37 South Korean Bank Execs Offer to Resign Over Breach. Should Target Execs Follow Suit?
Kozlak went on to say that employees who work 20 to 31 hours a week still qualify for the company's 401(k) plan, and remain eligible for life insurance, dental, disability and vacation benefits.
This statement preceded an announcement on Wednesday that Target was laying off 475 employees. Additionally, Target is still addressing the holiday data security breach that affected 70 million customers.
Target, of course, is not the only company to discontinue part-time healthcare with the implementation of the Affordable Care Act, which requires companies to offer coverage for workers who put in 30 or more hours a week. Forever 21, Trader Joe's and The Home Depot have all made similar changes.
Related: Target's Security Breach Stresses the Need for Better Cyber Security