Under the Employer Shared Responsibility Provisions of the Affordable Care Act (ACA), large employers must offer health coverage that meets Minimum Essential Coverage (MEC) requirements to 95 percent of their full-time employees or be exposed to possible penalties. This includes anyone who averages 30 or more hours of service per week or 130 hours per month.

Employers can determine their employees’ full-time status by counting each employee’s hours of service using one of two “equivalency” measurement methods: monthly and
look-back. Here we’re going to focus on the look-back measurement.