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One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsNC specificDifficulty 2/5

For purposes of North Carolina's small-employer health coverage statutes, how many hours must a normal workweek include for an employee to be an eligible employee, and how many eligible employees may a small employer have at most?

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under G.S. 58-50-110(10) and (22), an eligible employee is a full-time employee whose normal workweek is 30 or more hours, and 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. Since 2014, this definition applies in North Carolina only to grandfathered group plans.

Why the other options are wrong

  • B) 20 hours understates the full-time threshold; the statute requires a normal workweek of 30 or more hours.
  • C) 100 employees doubles the statutory ceiling of 50 eligible employees.
  • D) Both figures are wrong: the workweek threshold is 30 hours and the employer ceiling is 50 eligible employees.

Memory hook

Small employer math: 30-hour weeks, capped at 50 eligible people.

State RegulationsNC specificDifficulty 2/5

For purposes of North Carolina's health coverage rules for small employers, which employer qualifies as a small employer?

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

Under G.S. 58-50-110(22) and (10), a small employer is one that on at least 50 percent of its working days during the preceding calendar quarter employed no more than 50 eligible employees, and an eligible employee is a full-time employee with a normal workweek of 30 or more hours. Both the 50-employee cap and the 50-percent-of-working-days test must be met; since 2014 the definition applies only to grandfathered group plans.

Why the other options are wrong

  • A) The cap is 50 eligible employees, not 100, and the working-days test is an essential part of the definition that this option omits.
  • C) There is no 25-employee threshold in the North Carolina definition, and the test looks to the preceding calendar quarter, not the full year.
  • D) The 30-or-more-hour workweek defines an eligible employee; the employer-level test is the 50-employee cap measured over half the working days of the quarter.

Memory hook

Small employer NC: 50 or fewer eligible employees on half the quarter's working days.

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