The ACA look-back measurement method
One method an employer can use to identify employees as full-time is the look-back measurement method. Using this method, an employer can create a testing period that spans a number of months.
- The look-back period cannot be less than 3 months, and it cannot be more than 12 months
Using the look-back method, an employee’s hours of service are calculated to see if, over the entire testing period, they averaged 130 hours per month. When the calculation of hours does pass this test, the employer is obligated to provide the employee access to health coverage during a corresponding stability period.
That stability period, which cannot be less than 6 months, generally mirrors the length of the test months. So if you have a 12-month measurement testing period, you would have a 12-month s