Here is a flowchart summarizing the ACA 13-week rehire policy, including the new hire and continuing employee classifications and the Rule of Parity:
- Employee is rehired after break in service:
- Was the break 13 consecutive weeks or more? (26 for educational institutions)
- Yes → Employee can be treated as a new hire. New measurement period and waiting period may apply.
- No → Check Rule of Parity:
- Rule of Parity → Was the break at least 4 weeks, and longer than immediately preceding employment?
- Yes → Employee can be treated as a new hire.
- No → Employee is a continuing employee. Coverage must be reinstated immediately if previously eligible.
- Was the break 13 consecutive weeks or more? (26 for educational institutions)
This chart visually guides how to classify a rehire for ACA purposes using the 13-week rule and Rule of Parity.
