Any employee who works an average of at least 30 hours per week for more than 120 days in a year. Part-time employees work an average of less than 30 hours per week.
Related Content
- Health insurance if you work part-time
- Options if you have job-based insurance
- For employers: Learn about the Small Business Health Options Program (SHOP) Marketplace
- For employers: Find out how to count your FTEs and see if you qualify for SHOP
Requirements around employee benefits are first based on the number of full-time employees a company has.
If the company is an Applicable Large Employer, an hourly employee becomes eligible for benefits if the number of hours they work meets or surpasses full-time work. The Affordable Care Act and the IRS define a full-time employee as one who works at least 30 hours a week or 130 hours a month on average. Employees who will be working full-time should be offered benefits based on the company’s Waiting Period.
Subscribe to receive timely updates about modern workplace trends from our industry experts
If the company is not an ALE, offering benefits to hourly employees is based on the company policy and carrier requirements.
Method for determining full-time status
When dealing with employees whose schedules fluctuate, it can be difficult to determine if their hours meet a level that is full-time. In situations such as this, the federal government has outlined a process for determining eligibility. The process involves 3 parts:
*Looking for an easy business compliance solution? Check out Zenefits’ ACA Compliance app.*
Standard measurement period
During this time (3-12 months according to employer’s discretion), an employee’s total hours are divided by the number of weeks worked to determine if their hours are averaging 30 or more per week.
Administrative period
During this time (no more than 90 days), the employer calculates an employee’s eligibility, discusses the employee’s status with them, and enrolls the employee in a benefit plan, if necessary.
Stability period
During this time (6-12 months and not shorter than the Standard Measurement Period), the employee is offered benefits if qualified. An employee’s offer and enrollment status is protected even if their hours drop below 30 per week until the Stability Period has ended and eligibility is determined again.
Final tips
Beginning the Standard Measurement Period and documenting the hours worked each week during that Period can help you navigate benefit eligibility questions for your hourly employees.
Helpful links
- Identifying Full-time Employees – IRS.gov
- What is a full-time equivalent employee?
- Required Employee Benefits – SBA.gov
Bookmark(1)
Please login to bookmark
No account yet? Register
Lauren Perales
As an HR Advisor at Zenefits, Lauren provides guidance and best practices to companies of all sizes with any HR and compliance questions. In her spare time, she enjoys reading and chasing her three dogs around.