How is an employee classified under the look-back measurement method for determining full-time employee status under the Affordable Care Act?

Author: Tracy Morley, XpertHR Legal Editor

The look-back measurement method for determining full-time employee status contains different rules for ongoing and new employees.

An ongoing (or current) employee is defined as an employee who has been employed for at least one standard measurement period. A new employee is any employee who has not been employed for at least one standard measurement period, and can be further categorized as a:

  • New full-time employee - Any employee who, at his or her start date, is reasonably expected to perform an average of at least 30 hours of service per week; or
  • New variable hour employee - Any employee who, based on facts and circumstances at the employee's start date, it cannot be determined whether the employee is reasonably expected to perform an average of at least 30 hours of service per week.

An employee is typically considered a seasonal employee if he or she is hired to perform services on a seasonal basis, such as an individual hired for the holiday season. A seasonal employee is defined as one who is hired into a position for which the customary annual employment is six months or fewer.