Affordable Care Act

The Basic Facts

Hours of Service

Full-time is defined as 30 hours/week or 130 hours/month. This includes:

  • Actual hours worked;
  • Hours paid, but not worked (for example, paid sick time or vacation time).

Hourly Employees

The employer must calculate actual hours of service from records of hours worked and hours for which payment is made or due.

Non-hourly and Salaried Employees

The employer must calculate hours of service by using one of three methods:

  • (A) The employer must calculate actual hours of service from records of hours worked and hours for which payment is made or due.
  • (B) A days-worked equivalency whereby the employee is credited with eight hours of service for each day for which the employee would be required to be credited with at least one hour of service.
  • (C) A weeks-worked equivalency whereby the employee is credited with 40 hours of service for each week for which the employee would be required to be credited with at least one hour of service.

** The proposed regulations contain “anti-abuse” rules, which state that employers may not use the days- or weeks-worked equivalency methods if those methods would substantially understate the hours worked.