Measurement periodsMeasurement period is a one year period that a variable hour employee's weekly average hours are measured. Both the standard and initial measurement periods are on a 12-month "look back" measurement method to determine the weekly average hours for variable hour employees. This measurement method accounts for break in service. Visit the Break in Service webpage to learn more about the break in service logic. Existing variable hour employees are measured on the standard measurement period (SMP) and the SMP start and end dates are set from mid-October of one year through mid-October of the following year. There are three different cases as to why variable hour employees will be measured on the IMP. Variable hour employees who are measured on the IMP will be dual-measured on the SMP as well. The initial measurement period start date is determined using the pay period rule.
Existing employeesExisting employees:
- work continuously without a break in service of 26 weeks in the measurement period.
- may have break in service that is greater than four week, but the break in service is less than the preceding employment period during the SMP.
Pay period ruleThe pay period rule is used to determine the IMP start and end dates. This is done by taking the next full pay period begin date following the day the employee earns their first hour of service. It is not based on the employee's hire date.
Dual-measuredA variable hour employee who is measured on the IMP will eventually be measured on the SMP. This is referred to as "dual-measured" because the employee will become an existing employee.
If an employee is determined to have exceeded the 30 hours per week threshold after completing their standard or initial measurement period, they have met the full-time definition under the ACA rule and they may be offered medical benefits. This will trigger the identification of the administrative and stability periods so that proper notifications can be sent to the department and employee. The administrative period is no longer than 90 days and the stability period is a one year period, which is also referred to as the "Plan Year".
Standard Measurement PeriodEmployees who are considered "existing employees".
Initial Measurement PeriodEmployees who started employment after the start of the SMP.
Dual Measurement PeriodsEmployees who are measured on IMP and SMP.
Plan YearThe plan year refers to the calendar year stability period from January 1 through December 31 of the same year.
Periods and statuses
For assistance in determining your variable hour employee's measurement period, please contact HR for help.