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Question: We have less than 50 employees (including 50 FTE). Can we set eligibility at a level of an employee who works 40 or more hours a week, or does it have to be 30?

Answer: An employer with less than 50 employees (including FTE) is not subject to the Employer Shared Responsibility Provision of the ACA. The definition set forth for a full-time employee for purposes of penalty would not be applicable to this small employer.

A small employer may define a full-time employee as one who works 40 or more hours a week. Please work with your carrier to design benefits eligibility for your plan(s). Often a small group plan (2-50 employees) will define full-time for eligibility purposes, as allowable in the state insurance code.