Under the Affordable Care Act (ACA), the definition of a full-time employee is critical for determining whether an employer must provide health insurance coverage. A full-time employee under ACA is someone who works 30 hours or more per week (or 130 hours per month on average). This standard is often called the ACA 30-hour rule.
ACA 30-Hour Rule Explained
Employees who work at least 30 hours per week (or 130 hours per month) are considered full-time for the purpose of the ACA’s employer mandate. This definition helps determine which workers must be offered health coverage.
Part-Time Employees Under ACA
Those who work fewer than 30 hours per week are generally considered part-time employees under the ACA. Part-time workers are not counted as full-time, but employers must still calculate full-time equivalents when determining if they meet ACA thresholds.
The 50 Full-Time Employee Threshold
Employers with 50 or more full-time employees (or full-time equivalents) are classified as Applicable Large Employers (ALEs). ALEs must offer affordable health coverage that provides minimum value to their full-time employees and dependents. Otherwise, they may face ACA penalties.
Key Takeaway
A full-time employee under ACA is defined as someone who works at least 30 hours per week. Employers with 50 or more full-time employees must provide affordable health coverage to stay compliant with the Affordable Care Act.