Does the ACA Rule of Parity apply to employers with 50+ or 100+ employees? If an employee is laid off and rehired less than 13 weeks later, must they be offered coverage with no waiting period.
The Rule of Parity would apply in a situation where an employer is required to comply with the Affordable Care Act’s Employer Mandate, that is, when an employer has 50+ full-time employees. Under the ACA, employers are required to treat rehired full-time employees as “continuing employees” and provide health coverage immediately upon hire in two cases: the 13 Week Rule (which is what you have described) and the Rule of Parity.
13 Week Rule: If the employee is rehired prior to at least 13 consecutive weeks where the employee did not work or provide an hour of service, the employer must treat the employee as continuing and offer immediate coverage. After 13 weeks, the employer can treat the rehired employee as a new employee, and apply the waiting period.
Rule of Parity: The employer chooses a period, measured in weeks, that is at least 4 weeks long. The employer can then treat the employee as a new employee if the employee’s absence is at least as long as the period chosen, and the employee’s period of absence exceeds the duration of the employee’s period of employment immediately before the break in service. For example, an employee who works for three weeks and then has a break in service of at least 4 weeks may be treated as a new employee. The Rule of Parity is really only applicable for employees who leave before completing 13 weeks of service.