Break in servicesBreak in service is a period of time when a variable hour employee is not working during their standard or initial measurement period. It is used to determine if the variable hour employee's break in service week(s) can be included or excluded towards the total number of weeks worked during the measurement period. The break in service may directly influence the weekly average hours calculation based on the break in service criteria explained in the "Determining the applicable break in service" section below.
Determining the applicable break in serviceDuring a measurement period, a variable hour employee may have multiple break in services, consecutively or sporadically and the same logic will apply. There are several types of break in services that can occur in a variable hour employee's standard or initial measurement period.
Break in services by weeks
Break in service less than 4 weeksAn employee who has a break in service of less than 4 weeks will get week count credited, but will received zero hours.
Break in service of at least 26 weeksAn employee who has a break in service of at least 26 weeks will not get hours or week count credited.
Break in service 4 weeks or greaterBut the break in service is less (or greater) than the preceding employment period.
501-hour limitationIf the break in service is greater than four weeks, the 501-hour limitation will be applied as well and most important to understand is that NAU is only required to credit a maximum of 501 hours in a calendar year. Calculating the hours to be credited to the employees break in service weeks can be complicated, so please request for assistance from HR.
501-hour limitationWhat is the 501-hour limitation? Inclusion or exclusion of the 501-hour credits.
Crediting the 501 hour limitationWho gets the credit up to 501 hours in a calendar year?
Examples of 501 hour creditExamples of how a variable hour employee may get credited up to 501 hours in a calendar year.
Determining the weekly average hoursThe break in service logic is applied to all types of break in service. How the 501-hours limitation is applied in a calendar year may varies depending on the type of break in service the employee is on. Before attempting to calculate the variable hour employee's weekly average hours, the measurement period must be identified first, then verify if they have had a break in service (use the models described above) and lastly have the employee's actual weekly hours in hand.
Applying these concepts can be intricate and for more information, contact Human Resources.