Under the ACA, an ALE is any company or organization that has an average of at least 50 full-time employees or “full-time equivalents” (FTE). (Note: These rules don’t apply to employees who are expected to work full-time at the time they are hired. It works like this: So why does the employer’s choice of measurement methods matter so much for seasonal employees? Because the number of employees you employ and the hours that they work during the prior year determines whether the employer must provide health coverage the following year, employers need to understand the Patient Protection and Affordable Care Act of 2010 (ACA) and all changes to the Act. hires college students or other seasonal workers, which measurement method the employer chooses to use, Your Guide to Montana’s New Marijuana Law, South Dakota’s Marijuana Laws — What You Need to Know, OSHA Clarifies Employer Reporting of COVID-19 Fatalities and Hospitalizations, “Ban the Box” Law: Hawaii Legislators Restrict Consideration of Criminal Records For Job Applicants, The Definitive Employee Handbook Checklist for 2021, The Break Room: Practical Methods for Ending Your Zoom Call, Free Small Business and HR Compliance Calendar: December 2020. You have 51 snow plow drivers working for you. Furthermore, you will have to provide her with health coverage for the second 3 months. It is up to the employer to decide internally how they choose to defin… She has covered HR for The Balance Careers since 2000. But it gets a bit more complicated than that. Employers must pay these seasonal workers overtime pay at a rate of one-and-a-half times their regular rate of pay for hours worked over 40 in a workweek. A full-time employee is an individual reasonably expected to work at least 30 hours per week. We hope this walkthrough has helped you determine which of your seasonal employees are entitled to health benefits. holiday, vacation or sick time). That means that you aren’t providing her health coverage. I am on leave due to no schooling for kids under the COVID-19 act. For current tax or legal advice, please consult with an accountant or an attorney. However, as noted above, overtime compensation requirements can apply for hours worked over 40 in a work week. We’ll call it Bob’s Snow Show. Starting in 2013, many employers cut employees' and seasonal employees’ hours back to 28 hours a week to ensure that something as simple as a bookkeeping error would not make a temporary employee eligible for health coverage. In July, she’ll have to pay her own premium. The FLSA does not limit the number of hours per day or per week that employees aged 16 years and older can be required to work. You are not an ALE, and therefore, the ACA’s employer shared responsibility requirements don’t apply to you. Under the ACA, a full-time employee is an employee who works on average either 1) 30 hours or more per workweek or 2) 130 hours during a month. So let’s say you are an ALE and you hire seasonal workers from June 1 through August 31 each year. They are called the monthly measurement method and the look-back measurement method. Other employers hire temporary and seasonal employees to cover for busy vacation times, or agriculture work when harvest rolls around. If you are an Applicable Large Employer (ALE) under the Affordable Care Act (ACA), you should already know that you have medical benefits obligations to your full-time employees. (That comes out to 130 hours worked per month.). How many hours must a full-time employee put into work? Starting in 2013, many employers cut employees' and seasonal employees’ hours back to 28 hours a week to ensure that something as simple as a bookkeeping error would not make a temporary employee eligible for health coverage. It all comes down to which measurement method the employer chooses to use for employees who work “variable hours.” IRS regulations allow employers to choose from one of two measurement methods to determine whether or not an employee is full-time, and therefore eligible for health coverage. The answer is a little more complex than you might think. How many hours per day or per week can an employee work? Using a 6-month look-back period, she averages 130 hours per month. Learn about South Dakota’s recently passed laws that cover recreational and medical uses of marijuana. Do I have to go back to work if my kids are still out of school? Employers have to choose one method, and use it for all of their different employees. Employees who are under 18 years old are limited in what they can do and must not be placed in hazardous occupations or given certain hazardous tasks to do. Employers often hire part-time workers to help with increased work demands or seasonal industry fluctuations that sometimes occur in certain industries. It sounds like Bob’s Snow Show qualifies as an ALE, right? Full-time employment is usually defined by at least 40 hours per week, whereas part-time employment is usually a minimum of 20 hours per week. One of your seasonal employees works 135 hours in June, 120 in July, and 150 in August. The second measurement method choice is the look-back measurement method. Get back to business with an all-in-one HR platform by Zenefits, Join the Workest community to ask questions in our community, bookmark articles, and receive our weekly email. Normally Spot does not like to give brand new employees a lot of hours right away. “If you hire a seasonal employee for 30 hours [per week] and they work 35 hours a week, the worker is not entitled to overtime pay under the FLSA. The term seasonal worker also applies when determining an … Where to find mask signs for my business? So let’s say you are an ALE and you hire seasonal workers from June 1 through August 31 each year. However, if you use a 3-month lookback period, she will average 130 hours per month for the first 3 months. The difference between full-time employment status and part-time employment status is defined by the number of hours an employee works each week. And, we’ll continue to do all we can to help navigate these uncertain times. Workest is powered by Zenefits. They want to make sure that you can handle the pace of the work and do a good job. If you are hired in for Prime Week you can expect to work about two weeks max. A typical full-time schedule is 40 hours per week, 52 weeks per year, which totals 2,080 hours. If your company is an ALE and you are planning to hire seasonal workers at some point, you might be required to provide them with health coverage or pay the penalty. Some have 366 days, for example, and some have more or fewer pay days than average because of the way weekends fall on the calendar. Spending too much time on HR, not your business? site explains more about the rules that apply to employees under age 16. join our seasonal team. If you keep their hours less than 130 hours per month, then they remain “part-time”. The U.S. Department of Labor does not give a definition of what a full-time employee is, but the IRS and the Affordable Care Act (aka Obamacare) define it as anyone working 30 or more hours per week, or 130 hours or more per month. This applies whether the employee is a temporary or seasonal employee or a full-time regular employee. Here’s what the rule says: If an employer had more than 50 FTEs for 120 days or fewer in the last calendar year, and all of the employees in excess of 50 during that time were seasonal workers, that employer is not an ALE. When calculating your FTEs for basic accounting or business purposes, the simplest way to do it is to divide total annual work hours for all employees by an average full-time annual work schedule. This year has been like no other, but some things will remain the same, like the impact our seasonal associates have in creating an amazing omni-channel experience for our customers. Well, maybe not. ... 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