State RegulationsNC specificDifficulty 2/5
Under North Carolina's small employer health insurance provisions, which employer meets the definition of a small employer?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-50-110(22) and (10), a small employer is one that employed no more than 50 eligible employees on at least 50% of its working days during the preceding calendar quarter, and an eligible employee is a full-time employee with a normal workweek of 30 or more hours. Flipping the headcount cap into a floor, measuring across a full year, or looking only at hours worked without the headcount cap all fail the statutory test.
Why the other options are wrong
- A: 'At least 50 eligible employees on every working day' both turns the maximum into a minimum and tightens the 50% threshold to every single day; the statute caps headcount, it does not set a floor.
- B: The measurement period is the preceding calendar quarter on at least half of working days — not the full preceding calendar year (G.S. 58-50-110(22)).
- D: A 30-hour workweek defines an eligible employee, not the employer test; the employer qualification also requires the headcount cap of no more than 50 (G.S. 58-50-110(22),(10)).
Memory hook
Small employer: 50 heads or fewer on half the quarter's days.