A waiting period is a set amount of time that must pass from an employee’s date of hire to that employee becoming eligible to select and be covered on a health insurance plan. Justworks offers 3 waiting periods to employers when selecting benefits in Justworks: 0 days, 30 days, and 60 days. Waiting periods can only be set up during initial company onboarding and during health insurance renewals.
How it works
Once an employee satisfies their waiting period, they’ll have the opportunity to select their medical, dental, and vision insurance in open enrollment. Open enrollment for new hires runs for 30 days, with plan coverage always becoming effective on the 1st 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
Employers may want to set different waiting periods for different groups of employees as long as each group is based on a bona fide employment based classification ( e.g. full-time vs part-time, or geographic location). These groups are called benefits classes. Please note that you can only set up these classes during initial company onboarding and during health insurance renewals.