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What is an “eligible” employee?

eligible employee
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What is an “eligible” employee?

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An employee is not considered an eligible employee if, upon beginning employment or upon first becoming eligible to participate in the plan, an employee makes a one-time election not to participate in the plan or any other 401k plan maintained (presently or in the future) by the Employer.

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As defined in the Rhode Island Small Employer Health Insurance Availability Act, Chapter 27-50-3(m): “Eligible employee” means an employee who works on a full-time basis with a normal work week of thirty (30) or more hours, except that at the employer’s sole discretion, the term shall also include an employee who works on a full-time basis with a normal work week of anywhere between at least seventeen and one-half (17.5) and thirty (30) hours, so long as this eligibility criterion is applied uniformly among all of the employer’s employees and without regard to any health status-related factor. The term includes a self-employed individual, a sole proprietor, a partner of a partnership, and may include an independent contractor, if the self- employed individual, sole proprietor, partner, or independent contractor is included as an employee under a health benefit plan of a small employer, but does not include an employee who works on a temporary or substitute basis or who works less than

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