Help Center
What are waiting periods?
A waiting period is a set amount of time that must pass from an employee’s date of hire to when that employee becomes eligible to select a health insurance plan. Justworks offers 3 waiting periods to employers when selecting benefits in Justworks including 0 days, 30 days, and 60 days. Waiting periods can only be set up during initial company onboarding and during health insurance renewals.
How do waiting periods work?
Once an employee satisfies their waiting period, they’ll have the opportunity to select their medical, dental, and vision insurance plans in open enrollment. Open enrollment for new hires is 30 days, with plan coverage always becoming effective on the first of the month after the employee’s eligibility date. Let’s look at some examples:
1. An employee hired on April 15th with a 0-day waiting period.
Open enrollment period: April 15th - May 15th
Plan coverage effective date: May 1st
2. An employee hired on April 15th with a 30-day waiting period.
Waiting period satisfied: May 15th
Open enrollment period: May 15th - June 14th
Plan coverage effective date: June 1st
3. An employee hired on April 15th with a 60-day waiting period.
Waiting period satisfied: June 14th
Open enrollment period: June 14th - July 14th
Plan Coverage effective date: July 1st
Waiting Periods and Benefits Classes
Employers may want to set different waiting periods for different groups of employees based on benefits classes. Please note that you can only set up benefits classes during initial company onboarding and during health insurance renewals.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.