State RegulationsOH specificDifficulty 1/5
Under ORC 3924.01, which of the following correctly defines a 'small employer' for purposes of Ohio's small-employer health coverage rules?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3924.01 defines a small employer by reference to the workforce during the preceding calendar year: an average of at least 2 but no more than 50 eligible employees on business days during that year (and at least 2 eligible employees on the first day of the plan year). Whether a group is a 'small employer' determines which of Ohio's small-employer protections, such as guaranteed issue under ORC 3924.03, apply to it.
Why the other options are wrong
- B) 18 is not the statutory floor; ORC 3924.01 uses an average of at least 2 eligible employees.
- C) The first-day-of-plan-year condition is at least 2 eligible employees, not 12.
- D) Exactly 50 on the first day of the plan year is neither required nor the test; the definition turns on the preceding calendar year average of 2 to 50.
Memory hook
Small employer = 2 to 50 on average last year, and at least 2 on day one.