Baked in the Sun owners Rachel Shein and Steve Pilarski must decide soon whether to offer health insurance for all 95 employees at a cost of $108,000, opt instead to pay the $2,000-per-employee fine or make workers in some positions independent contractors to cut full-time staff to less than 50. "It's ironic that our success meant we could grow, and now we will be competing against smaller companies, with 50 employees or fewer, who will be able to charge less per item because they don’t have the financial burden of health insurance," Shein said.