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Health Insurance FAQs

What’s the definition of a full-time employee under the ACA?

March 27, 2025

Under the Affordable Care Act (ACA), a full-time employee is someone who works an average of at least 30 hours per week, or 130 hours per month.

This definition is used to determine:

  • Whether an employer is considered an Applicable Large Employer (ALE)

  • Which employees must be offered affordable, minimum value coverage to avoid employer mandate penalties


🔁 Hourly vs. Salaried:

  • For hourly employees, employers track actual hours worked

  • For salaried employees, employers may use reasonable equivalency methods (like 8 hours/day or 40 hours/week)


🧠 Important Note:

This definition is stricter than many employers’ internal definitions of full-time. An employee may not qualify for company benefits at 30 hours, but they do count under the ACA rules.

Employer Responsibilities Employer Mandate

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