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According to the ERISA Outline Book, in order to be a leased employee, that employee must be substantially full-time for at least a year. It goes on to describe "substantially full-time" as 1,500 hours or 75% of the customary hours in that job position. Therefore, the 1,000 hour rule has no relevance for leased employees?

More specifically, the company I am working with has more leased employees than other employees but the leased employees work only seasonally, during the summer. They probably do not even get in 1,000 hours so they would never become employees eligible to participate in the company's qualfied plan, correct?

Kate Smith

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