How to use days-worked equivalency?

Question:

We have salaried employees who are scheduled three days a week. They generally work between 10 and 12 hours per day on those three days and then are off until the next week. We do not track their hours.

In reading the final regulations for the Affordable Care Act’s employer shared responsibility provisions, we saw we could use a days-worked equivalency whereby the employee is credited with 8 hours of service each day for which he or she works regardless of how many hours they actually work.

Under this method, we would only have to credit these employees with 24 hours of service (8 hours x 3 days) per week which would put them under the 30-hour threshold for offering coverage.

Is this correct?

Answer:


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