If I rehire my employee who quit last week…..?

 

In the course of any client/advisor relationship, there will be the random “what if” phone call.  I want to share this week’s moment, where I took pause to double check my answer before espousing that I knew the answer with certainty.

Scenario:

I have a client in the restaurant industry, and they control about 12 or so different locations.  They had an employee submit their formal resignation at the end of last week.  As of today, they have rehired that same employee.

The client offers Health, Dental, Vision and life insurance.

The Question:

Does this employee restart the waiting period for benefits like a new hire, or do they get reinstated for benefits on their rehire date?

The Answer:

I reached out and asked utilized our partners over at ThinkHR to gather some extra insight.  Here is their short answer:

“For applicable large employers subject to the ACA Employer Shared Responsibility Provision, there is an ACA rehire rule that an employee rehired within 13 weeks must be treated as a continuing employee.  This means the employee must be reinstated with their previous benefits with no new waiting period.”

Caveat: There was a whole extra part of the advice surrounding the rule of parity and breaks of services.  Yadda, yadda , yadda.   I’d share all that insight, but they’d make you pay for that kind of service!

The Results:

I was able to share the feedback, and have an expert back up my suspicion of what should occur.  The employer now performs a compliant action, and we all rest easy.

 

The Takeaway:

#1)  Have an expert on hand.  We offer ThinkHR when there are questions we aren’t experts.

#2)  Have your documents in order, including the rules of your SPD or ERISA Wrap documents so you can do a quick search

#3)  Regularly review and put a protocol in place to make sure your Handbook, ERISA documents and your Health Plan documents are free of conflict.

#4)  Don’t be too certain of yourself, revert to #1 rule and have an expert on hand.

 

 

 

Bret Brummitt

Bret Brummitt

Senior Consultant

About the author: An avid learner and resourceful leader with a passion for problem solving, Bret is a calming force in the chaos and fast paced evolution of health insurance, employee benefits, and the growing burden of regulatory compliance. He helps people develop the confidence to see beyond the problem at hand and start to re-imagine their goals. Whether he’s helping a client or a colleague, Bret believes a successful interaction is one that allows us all to dream a little bigger when we’re done.

About AG Insurance: AG Insurance (www.agiainc.com) helps employers and their employees with solutions focused on positive organizational impact and improved employee experiences.

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