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ACA: Break in Service

Break in Service: An employment break of at least four consecutive weeks, during which an employee of an educational organization is not credited with hours of service.

How does a break in service impact the measurement period?

  • If an employee’s break in service is less than 26 weeks without any hours of service, ACA requires that the break in service period be excluded from the measurement period.
  • If an employee’s break in service is 26 weeks or more, ACA will allow the employer to treat them as terminated and rehired.
  • If an employee’s break in service, is at least four weeks, and it exceeds the number of weeks of employment immediately preceding the break in service during which the employee was not credited with any hours of service, ACA will allow the employer to treat them as terminated and rehired based on the “Rule of Parity.”