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How to determine if an employer is an ALE

People in New York may be interested to learn that the IRS uses certain rigid classifications to determine if an employer is an Applicable Large Employer under the Affordable Care Act. Two options under the Affordable Care Act, one dealing with shared responsibility and one dealing with information reporting for offers of minimum essential coverage, apply only to these types of employees.

Determining whether an employer falls under this classification is based on information from the previous year. An ALE must have had more than 50 full-time or full-time equivalent employees. A full-time employee in any given calendar month is defined as someone who worked at least 30 hours per week during that month or at least 130 hours total during that month. A full-time equivalent employee counts up the hours of more than one part-time employee to reach the same number of hours in a calendar month as a full-time employee.

There is one exception in determining who is a full-time employee for the purposes of identifying an ALE. Due to the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, if an employee is covered for medical care though the military, that employee is not counted.

Employees who feel their rights are being violated in relation to health insurance may want to speak to an attorney. For example, an employee might suspect that their hours have been reduced as part of an employer's effort to avoid classification as an ALE. In a situation like this or any other case in which an employee feels that they are being denied benefits, wages, or overtime, they may want to file a lawsuit.

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