State RegulationsNC specificDifficulty 1/5
Under North Carolina law, an employer qualifies as a 'small employer' for health coverage purposes when, on at least half of its working days during the preceding calendar quarter, it employed no more than how many eligible employees?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
G.S. 58-50-110(22) defines a small employer as one that, on at least 50% of its working days during the preceding calendar quarter, employed no more than 50 eligible employees. Under G.S. 58-50-110(10), an eligible employee is a full-time employee with a normal workweek of 30 or more hours. Since 2014, this North Carolina definition applies chiefly to grandfathered group plans.
Why the other options are wrong
- A) No North Carolina statute uses 25 as the small-employer threshold; the figure in G.S. 58-50-110(22) is 50 eligible employees.
- B) 10 has no statutory basis in the small-employer definition; G.S. 58-50-110(22) fixes the maximum at 50 eligible employees.
- C) 100 is not the North Carolina cap; counting up to 100 employees is a federal ACA framing, not the test in G.S. 58-50-110(22).
Memory hook
Small in NC means 50 or fewer on at least half the quarter's days.