Giant food service contractor Sodexo backtracks after bumping thousands from health plan

Associated Press

A giant food service company that bumped thousands of college cafeteria workers from its health plan earlier this year now says it's backtracking.

Sodexo had justified its original decision by saying it was aligning corporate policies with the requirements of President Barack Obama's health care law. But the move fueled a union organizing drive and campus protests.

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Now Sodexo's experience could be a cautionary tale for other employers looking to blame "Obamacare" for benefit reductions.

Julie Peterson, the company's vice president for benefits, tells The Associated Press the latest policy shift will restore eligibility for health care and other benefits next year to many of the affected workers.

The Obama administration says nothing in the health care law requires an employer to drop coverage.