during the stability period that follows
the standard measurement period.
Employers are also permitted to
use an administrative period between
the standard measurement period and
the stability period to determine which
ongoing employees are eligible for
coverage and enroll these employees.
This administrative period may last
up to 90 days, but may neither increase
nor decrease the measurement or
stability period.
If a new employee is reasonably
expected to work full time at the start
date, no penalties will be assessed as
long as the employer offers coverage
to the employee before the end of the
90-day waiting period discussed in
this article. There is also a special
safe harbor for determining whether
variable-hour and seasonal employees
whether these workers are FTEs using
an initial measurement period of three
to 12 months. The employer measures
the hours of service completed during
that period to determine whether an
employee completed an average of 30
hours of service per week.
Period Limitation
from imposing a waiting period for
enrollment in group health coverage of
more than 90 days. "Waiting period"
is defined as the period that must pass
before coverage becomes effective for an
employee or dependent who is otherwise
eligible to enroll under a group health
plan's terms. The plan may impose other
as the condition is not designed to avoid
the 90-day waiting period limitation.
potential liability for violation of the
shared responsibility provision and
provide them an opportunity to respond
before any liability is assessed or notice
and demand for payment is made.
and avoid costly penalties, employers
should have already taken a close look
at the composition of their workforce
to determine which employees qualify
as FTEs. Employers with specific
questions regarding their obligations
under the ACA should consult an
attorney.