Breaks in Service and the Rule of Parity - Affordable Care Act

A break in service is defined by two categories: Educational Organizations (agency 511) and Non-Educational Organizations (Majority of State Agencies).

To determine if an employee has had a break in service:

1. Identify the last time hours of service were coded.

2. Identify whether the employee works for a non-educational agency or an educational agency.

Note: The previous agency and the current agency must both be educational agencies for the rules regarding educational agencies to apply (agency 511).

3. Measure break in service based on type of agency. (A) Non- Educational Agency or (B) Educational Agency).

(A) Non - Educational Agencies 

Number of Weeks with zero Hours of Service

​Rule

​Less than 4 weeks​No Break in Service
​4 weeks up to 14 weeks​Subject to the Rule of Parity*
​14 weeks and greater​Break in Service

 

(B) Educational Agencies (only agency 511) 

Number of Weeks with zero Hours of Service

​Rule

​Less than 4 weeks​No Break in Service
​4 weeks up to 26 weeks​Subject to the Rule of Parity*
​26 weeks and greater​Break in Service

*Rule of Parity

If the last period of employment is less than the break in ACA hours then it IS considered a break in service and should be treated as a new employee.

Example: Employee started January 1st and worked through February 1st. They have coded zero ACA for the past 8 weeks and they are now looking to return to employment. Their last period of employment was only 1 month long and their break was 2 months long. In other words their break was longer then their employment period and is therefore is considered a break in service

If the last period of employment period is equal to or greater than the break in ACA hours then it is NOT considered a break in service and should continue with the  standard measurement period.

Example: Employee started January 1st and worked through July 1st. They have coded zero ACA for the past 8 weeks and they are now looking to return to employment. Their last period of employment was 7 month long and their break was 2 months long. In other words their break was shorter then their employment period and is therefore not considered a break in service

 Break in Service

Break in Service (Non-Educational Organization) – An employee who does not code any Hours of Service for a period greater than 13 weeks. If the employee resumes employment following the 13 weeks absence, they then will be treated as a new employee.

Note: This will only take place if the employee has coded zero Hours of Service during that 14 week period.

Break in Service (Educational Organization)An employee who does not code any Hours of Service for a period greater than 26 weeks. If the employee resumes employment following the 26 weeks absence, they then will be treated as a new employee.

Note: This will only take place if the employee has coded zero Hours of Service during that 26 week period.​

Note:​ ACA's Policy states 13 weeks. However, due to biweekly payroll processing, a 14-week break is required in order to be considered a new employee.

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