State RegulationsOH specificDifficulty 2/5
An Akron manufacturer employed an average of 51 eligible employees on business days during the preceding calendar year and seeks small-employer health coverage. Under ORC 3924.01, the manufacturer:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3924.01 caps the small-employer definition at an average of no more than 50 eligible employees on business days during the preceding calendar year. An employer averaging 51 eligible employees exceeds that ceiling, so it falls outside the small-employer rules regardless of how many employees it had on the first day of the plan year.
Why the other options are wrong
- A) Having at least 2 eligible employees on the first day of the plan year is necessary but not sufficient; the preceding-year average must also be no more than 50.
- B) Ohio law does set an upper bound — an average of 50 eligible employees under ORC 3924.01.
- D) A 12-month coverage-history condition appears nowhere in the ORC 3924.01 definition; the failure here is the 51-employee average.
Memory hook
Above 50 average last year? Too big to be a small employer.