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Stability period with no measurement period


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Employer offers coverage to everyone regardless of hours worked. If you work 20hr/week, you get coverage. If you work 40hrs/week, you get coverage.

Because of this, the employer isn't applying a measurement period. But is a measurement period and a stability period applying in the background?

So, if an employee works in year one and goes on leave of absence in year two, is the employee entitled to an offer of coverage throughout the entire period of absence because an imputed stability period requires it?

Is there a measurement period/stability period operating in the background even though the employer isn't using this for plan eligibility purposes?

Employer doesn't want to give benefits on an extended leave of absence.

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Since you're client has not elected the look-back measurement method they are defaulted to the monthly measurement method (determine each employees' status as of the end of each calendar month).

Accordingly there is no applicable stability period to worry about and the employee on extended leave of absence is not "full-time" for penalty purposes for any month in which they work less than 130 hours.

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