If one of our clients (ALE) has variable hour employees, how would the temporary layoff effect their look back period?

Currently, ACA Employer Shared Responsibility law applies to ALE’s. This means that service hours are what is counted during the measurement period to determine future eligibility. If variable employees are not scheduled then there are no hours to count. However, under the Employer Shared Responsibility mandate, there are Break in Service rules:

Breaking Service
The ACA rules offer two methods for an employer to determine if an employee will be considered a continuing employee (for purposes of the ACA employer mandate) following a period of unpaid absence (including a termination). If an employee is treated as continuing, then the employee’s status as full-time or part-time continues when they return.

The two methods are: