Under the Affordable Care Act (ACA), a full-time employee is defined as an individual employed, on average, for at least 30 hours of service per week, or 130 hours of service in a calendar month. This definition is crucial for determining employer responsibilities regarding the offering of health coverage. For instance, an employee consistently working 35 hours per week would be classified as full-time under the ACA.
The establishment of this definition is vital because it triggers the employer shared responsibility provisions, often referred to as “employer mandate,” of the ACA. Employers with 50 or more full-time employees (or full-time equivalents) are generally required to offer affordable health insurance that provides minimum value to their full-time employees and their dependents. Failure to meet these requirements can result in penalties. The historical context involved a need to standardize eligibility for employer-sponsored health coverage to ensure broader access and affordability.