Health Insurance & Employee Classification: Salaried vs. Hourly - ACA Compliance

Generally, no. Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees (FTEs) are required to offer health insurance to all full-time employees. This means that employers cannot offer health insurance to salaried employees but not hourly employees if both groups are considered full-time employees.

However, there are some exceptions to this rule. For example, employers may offer health insurance to salaried employees but not hourly employees if:

- The hourly employees are not considered full-time employees under the ACA.

- The hourly employees are covered by a separate health insurance plan.

- The employer is a governmental entity.

Employers who are considering offering health insurance to salaried employees but not hourly employees should consult with an attorney to ensure that they are in compliance with the ACA and other applicable laws.