What is an applicable large employer (ALE)?

A company is an Applicable Large Employer for a given calendar year if it employed an average of 50 or more full-time employees (including full-time equivalents) in the prior calendar year.

The employer mandate only applies to Applicable Large Employers.

If a company has several entities within a single control group, they are likely to be considered an Aggregated Applicable Large Employer (AALE).

For directions on how to determine whether or not a company is considered an Applicable Large Employer, see this page on how to Determine Applicable Large Employer Status.

A new employer (that is, an employer that was not in existence on any business day in the prior calendar year) is an ALE for the current calendar year if it reasonably expects to employ, and actually does employ, an average of at least 50 full-time employees (including full-time equivalent employees) during the current calendar year.

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