Employee Classification & Benefits Eligibility

Whether you’re applying for benefits for the first time or you are bringing a new employee onboard, you’ll want to consider how to classify your employees for their benefits eligibility.  Here are the implications of the different employment statuses:

Full-Time (30+ hours per week)

Employees who work 30 hours or more in a week are always eligible for health benefits.

Part-Time (20-29 hours per week)

Employees who work between 20 and 29 hours in a week may be eligible for health benefits depending on how the company chose to define eligibility when setting up their benefits at the beginning of the year.

Part-Time (0-19 hours per week)

Employees who work less than 20 hours in a week are never eligible for health benefits (carriers’ rules, not ours!).

Variable (hours vary every week)

Employees who have unpredictable working hours and the employer can’t determine if the employee will work an average of 30 hours per week based on the initial measurement period. Learn more from our Help Center article on variable hour employees.

Seasonal employee

Employees who are hired into a position that will last 6 months of the year or less.

Note: Some states have minimum hour requirements that differ from the numbers above. Your specific state’s requirements may vary. We recommend reaching out and talking with a licensed advisor to discuss your needs.

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