Affordable Care Act (ACA): Understanding Hours of Service
HOURS OF SERVICE
Overview
“Hours” of service are generally determined based on hours for which an individual is entitled to payment. This can
include hours actually worked, along with other paid hours (e.g., vacation).
The IRS standard is:
(1) each hour for which an employee is paid, or entitled to payment, for the performance of duties for the
employer; and
(2) each hour for which an employee is paid, or entitled to payment by the employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.