An expectation that these interim guidelines would also apply at least through the end of 2014 was also noted.

PPACA states at least a 30-hour per week average when considering whether an employee is full-time as it relates to the employer mandate. Notice 2012-58 now clarifies that an employer may use a look-back measurement period of no less than 3 months and up to 12 months to determine whether variable hour or seasonal employees (no more than 120 days) are, in fact, full-time employees. This safe harbor further explains that a variable hour employee is a new hire for whom it cannot be determined from the start date of employment whether the average of at least 30 hours per week will be reasonably expected. The safe harbor also applies when calculating full-time status for existing employees.

Looking deeper into this notice, an employer subject to the mandate also has a safe harbor for new variable or seasonal hires. If deemed full-time after the look-back period (no sooner than 3 months, no later than 12), the employer should offer coverage no later than the last day of the first calendar month beginning on or after the 1 year anniversary of the employee’s start date. Confused yet?

EXAMPLE: Let’s say I’m hired by an employer subject to the mandate on October 15, 2012. After 12 months, my employer looks back and I’ve averaged at least 30 hours per week, so I’m considered full-time. My group coverage should begin on or before November 30, 2013.

We’ll blog more shortly on these initial measurement periods, administrative periods and waiting periods. Stay tuned and we’ll help you Navigate the Current!