Change in Status and Rehires
If the employee was hired as a variable hour or seasonal employee, but was moved to full-time status during the initial measurement period, then the employee is considered an FTE on the first day of the fourth month following the status change (or, if earlier and the employee averages 30 hours or more per week during the initial measurement period, then the first day of the first month following the end of that measurement period). Other change in status situations can be quite complicated under the rules, and depend heavily on the method used for determining full-time status (monthly measurement method versus look-back measurement method).
An employee will generally retain FTE or non-FTE status during an entire stability period for as long as the employee continues to be employed by the employer. If not considered a continuing employee, the employee is considered a new employee and enters into a new initial measurement period upon rehire. There are two methods of determining when an employee returning to work following a period of absence (including a termination) will be considered a new employee:
- If the employee is rehired after at least 13 consecutive non-working weeks (approximately 3 1/2 months), the employee is considered a new employee.
- The second method applies for periods of absence less than 13 weeks; if the absence was at least four weeks and exceeds the number of weeks of employment immediately preceding the absence, the employee may be treated as a new employee. This is known as the “rule of parity.”
If the employee is not considered a new employee under either of those two methods, then upon rehire the employee is considered a continuing employee, meaning the employer treats the rehired employee as if the employee never left, and full-time or non-full-time status is retained.