What if I have alot of Part-Time, Seasonal or Variable Hour workers?

Employers are going to have to track a lot more information under these circumstances, under the 400-page “90 day waiting rule” section of Health Care Reform.

Here how it will work-

The Employer will select a “Measurement Period” of 3, 6 or 12 months.  Consider this a “look-back period” during which time you will determine the average number of hours worked by each employee.  You must use the same time period for all employees.   This “Measurement Period” would take the place of the normal “waiting period” you apply to full time employees.

Any employee working more than the 30 hour requirement, on average, in the measurement period would be eligible for insurance at the end of the period.  They would be guaranteed insurance for the same length of time as the measurement period, and this time frame is called the “Stability Period.” You then have 90 days to actually get the individual covered (“Administrative Period“).

So lets look at a real life example:

You have three variable hour employees, and you choose a 6 month measurement period.

Joe comes in pretty regularly and averages 27 hours, although the last two months he has averaged more than 30.

Ann works wildly varying hours and the last two months has only worked an average of 15.  However, her 6 month average is 33 hours per week.

Karen works a regularly assigned 24 hours each week consistently.

You would be required to offer insurance only to Ann.  She would be eligible to stay on the insurance for 6 months at which time her eligibility would be revisited.  Joe and Karen are not eligible for the next 6 months, but you have to continue to track their hours so you can relook at it in 6 months.

As you can see, there will be a lot of tracking needed…