|
X-Ell Employee Benefits, LLC |
|
New-Hire/Employee Waiting
Period |
|
NJ Small Employer (2-50) Reform Law Summary |
|
An employer can elect a waiting
period for newly hired or rehired employees between 0-6 months, in monthly
increments. The waiting period is
calculated from the date of hire or rehire, or from when the employee first
becomes eligible for coverage. Rehires
are treated the same as new-hires. Businesses with high turnover in
certain classes can select longer waiting periods for new hires in those
classes. If a business is seasonal, a
6 month waiting period may ensure that employees will not be able to enroll
for health benefits prior to the satisfaction of the waiting period (see
example below). This must be
applicable to the entire class of employees in order to be permitted by
law. If the business is seasonal, the
owners may opt for immediate coverage, and should work hours fall below the
minimum 25 hours per week at any point during the year, they may be eligible
to continue health benefits under State or Federal continuation provisions
(COBRA or New Jersey Continuation of Coverage). Waiting periods must be the same
for each defined class of employees in order to not be deemed discriminatory. Each
class may have a different waiting period.
Some examples of classes are:
salaried, hourly, management, non-management, officers, owners, partners,
etc. Once a class is established, all
newly hired employees within that class will have the same waiting period. When employers are switching
between carriers or are initially enrolling for group benefits as a small
employer, they can opt a 0-6 month waiting period (also in monthly
increments) for present employees, as well.
The waiting period for present employees is calculated from each
employee's date or hire, or date they first became eligible. If the employer is switching from one small
employer plan to another, or between insurance companies, those employees
already covered will not have to satisfy a new waiting period to enroll.
(NOTE: Do not confuse the waiting period for enrollment with the pre-existing
condition waiting period imposed for uninsured employees or late entrants.
See "Pre-existing Conditions" and "Portability" below for
more details.) |
|
1680 Route 23 North, Suite 310, Wayne, NJ 07470 |