Most businesses focus on taking care of their people in a number of ways, from offering competitive wages, to providing perks and benefits, to building a workplace culture where people feel supported. One way people can feel supported is knowing that they can look forward to a couple of breaks during their shift. Managing Breaks […]Read More >
Safe Harbor Method for a New Employee
- nettime solutions staff
The safe harbor method for a new employee is slightly different than the method discussed in the previous blog, “Safe Harbor Method for an Ongoing Employee.” If the employee is hired as full-time, the waiting period for coverage can be no longer than 90 days. If he or she is hired as a variable hour employee, a measurement and stability period is used.
In the case of a new variable hour employee, the measurement period is called an “initial measurement period.” It follows the same length guidelines as the standard measurement period for an ongoing employee (3-12 months); however, the initial measurement period is to begin on the employee’s start date, or on the first day of the following calendar month. During the initial measurement period, the employee’s hours are tracked and averaged to determine his or her full-time or part-time status. Full-time status requirements are the same for new employees as they are for ongoing employees. The employee must work an average of 130 hours per month to be considered full-time.
The stability period follows the initial measurement period (unless an administrative period is used). The length of the stability period for a new employee must be the same length as the stability period for ongoing employees. This period must also be no shorter than 6 months. During this time, the employee is either treated as full-time or part-time based on the results of the initial measurement period.
Employers may use an administrative period between the initial measurement and stability period for new employees. This time can be used to verify eligibility, inform and enroll the full-time employee. The administrative period is not to exceed 90 days. In addition, the initial measurement period and administrative period combined can not exceed 13 months after the new employee’s hire date.
When the initial measurement period ends, and the new employee has been employed through one standard measurement period, the employee is transferred to “ongoing employee” status.