ACA - Change in Employment Status (New Variable Hour Employee)

[Christine Roberts]

New variable hour employee changes employment status during their initial measurement period, to permanent full-time position. The proposed regulations require that they be "treated as a full time employee" by (a) the first day of the fourth month following the change in employment status or, if earlier and the employee has averaged at least 30 hours/week during the initial measurement period elapsed to date, (b) the first day of the first month following the end of the initial measurement period (including any optional administrative period associated with the initial measurement period).

The question is, does "treat as a full time employee" mean to offer immediate enrollment in coverage, or to apply a 90-day (or less) waiting period as applicable to other full-time employees?

I think that the (a) and (b) periods are meant to serve as the equivalent of waiting periods (i.e., no additional waiting period applies) but would be interested in comments on the meaning of "treat as a full-time employee" in this context.

[leevena]

New variable hour employee changes employment status during their initial measurement period, to permanent full-time position. The proposed regulations require that they be "treated as a full time employee" by (a) the first day of the fourth month following the change in employment status or, if earlier and the employee has averaged at least 30 hours/week during the initial measurement period elapsed to date, (b) the first day of the first month following the end of the initial measurement period (including any optional administrative period associated with the initial measurement period).

The question is, does "treat as a full time employee" mean to offer immediate enrollment in coverage, or to apply a 90-day (or less) waiting period as applicable to other full-time employees?

I think that the (a) and (b) periods are meant to serve as the equivalent of waiting periods (i.e., no additional waiting period applies) but would be interested in comments on the meaning of "treat as a full-time employee" in this context.

I have not seen any direction from the govt on this, but I would say that it means you can start the clock, not offer immediate coverage. In a non-PPACA world, if the employer has a 90-day waiting period and a part-timer transitions to full-time they will be subject to the definitions/rules contained in their plan. Most of the time (there can be exceptions) the wording is something along the lines of "an eligible employee is one who is full-time and has satisfied any applicable waiting period."

[Guest new2nqdc]

I'm grappling with the same issue and tend to agree with you, but cannot find much (ACA FAQs Part XVI did not seem to help much with a straight 90-day WP in this scenario). Have you heard/found anything since April? Thanks in advance for any info.