How Long Do New Hires Have To Enroll in Benefits?

Employee Benefits
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6 min. Read
Last Updated: 07/30/2024

A new hire discusses benefit enrollment with his manager

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Employers can set different guidelines for a new hire enrollment period, but 30 days is typical. This 30-day window, known as the initial enrollment period, begins on the initial employment date.

Open enrollment communication is critical to making your staff fully aware of how long they have to consider their benefits. Be prepared to answer questions, provide resources, and clear up misconceptions about benefits elections.

Common New Hire Benefit Enrollment Deadlines

Your company's policies, the types of benefits offered, and even state regulations can influence the new hire benefits enrollment deadlines. Before you notify employees of deadlines, you must understand common options, such as:

No later than 30 days from the date of hire: This standard timeline requires new employees to submit their benefit selections within 30 days of their official start date.
Before benefits become effective: Some employers may require new hires to enroll before the coverage begins. For example, if benefits take effect on the first of the month following the hire date, companies can set the enrollment deadline a few days or weeks before that date.
During a 30-day grace period: Employers may offer a grace period of 30 days after the effective date of benefits. This gives employees more flexibility in submitting their enrollment selections.
Within 60 days of the hire date: While less common, some companies may provide a longer enrollment window, such as 60 days after the initial workday, to give new employees more time to decide on benefits.

It's rare for an employee to decline coverage, as 75% of eligible workers opt for coverage when offered, according to a 2023 Employer Health Benefits Survey by KFF, an independent source for health policy research. New team members who miss open enrollment must wait for the next enrollment window to sign up for coverage.

New Hire Waiting Periods for Health Insurance and Other Benefits

New hire enrollment deadlines can delay the start of benefits. Additionally, your company may have waiting periods for health insurance, life insurance, retirement plan participation, and other benefits. A waiting period is the time between an employee's start date and when they become eligible for benefits. These periods can help ensure new hires are committed to their roles and manage benefits costs.

First of the month after the start date: Benefits start on the first day of the month after the first date of employment. For example, if an employee starts on June 15, benefits begin on July 1.
30, 60, or 90 days after the start date: Benefits start on the first of the month after a set timeframe, such as 30, 60, or 90 days, with coverage beginning on the first of the following month. For example, if an employee starts on May 23, a 60-day waiting period would have benefits take effect on August 1.
Immediate coverage: Benefits don't have a waiting period. Instead, they begin on the employee's first day.
Probationary period: Benefits start after a probationary period tied to performance evaluation. If the employee completes the probationary period, their benefits can take effect.

Keep in mind that the Affordable Care Act (ACA) sets a maximum new hire waiting period for health insurance at 90 days.

Ensure Benefits Enrollment Is Part of New Hire Onboarding

Making benefits enrollment part of your new hire onboarding process is a savvy way to support your employees from the get-go. By providing transparent information about enrollment windows, waiting periods, and the full spectrum of benefits available, you demonstrate your commitment to their well-being.

Collaborating with Paychex empowers you to craft an employee benefits package tailored to your workforce's needs, spanning health insurance, retirement plans, and beyond. With their guidance and robust tools, you'll be well-equipped to create a seamless experience that sets your employees on the path to success.

New Hire Benefits Enrollment FAQs

It's common to field questions from new hires about the benefits enrollment process. To help you tackle these conversations easily, we've put together straightforward answers to common questions.

What Does Enrollment Period Mean?
What Does Enrollment Period Mean?

The enrollment period is when new employees can sign up for your company's benefits package. It usually kicks off on their hire date and lasts for a set amount of time, like 30 days. During this enrollment window, new team members can check their options, ask questions, and choose the best plans for them and their families.
What Happens if New Hires Miss the Enrollment Period?
What Happens if New Hires Miss the Enrollment Period?

If a new employee missed open enrollment, they may have to wait until the next enrollment period to sign up for benefits.

Open enrollment typically occurs once a year, allowing employees to change their benefits. However, they can enroll outside the usual period if they experience a qualifying life event, such as marriage, divorce, having a baby, or losing coverage from another source.
When Should Benefits Start With a New Employee?
When Should Benefits Start With a New Employee?

The start date for a new employee's benefits can vary based on your company's policies and the specific benefits you offer. Some employers establish delays before benefits begin, while others provide coverage from day one.

Common benefits start dates include the first of the month after the hire date or after a set period, like 30, 60, or 90 days after the employee's first day of work. It's helpful to let staff know when benefits begin during the onboarding process.
Why Do Some Companies Wait 90 Days for Insurance and Benefits?
Why Do Some Companies Wait 90 Days for Insurance and Benefits?

Some companies implement a 90-day eligibility period for insurance and benefits to control costs and ensure new hires show dedication to their roles. This waiting period gives employers time to evaluate the employee's performance and determine how they fit with the company before investing in their benefits.

The Affordable Care Act (ACA) allows employers to impose a delay of up to 90 days before health insurance coverage must begin. This helps businesses balance health insurance costs with the need to offer competitive benefits to attract and keep top talent.
How Long Is Open Enrollment for Most Companies?
How Long Is Open Enrollment for Most Companies?

Open enrollment typically lasts two to four weeks, giving employees time to review and update their benefits. You must communicate the open enrollment dates early, provide essential information and resources, and remain available to answer any questions.
How Long Do Employees Typically Have To Wait for Benefits at a New Job?
How Long Do Employees Typically Have To Wait for Benefits at a New Job?

The waiting period for benefits at a new job can range from none, with coverage starting on the first day, to months. The most common timeframe is 30, 60, or 90 days from the employee's hire date.

Clearly explain the timeline and effective dates of benefits during onboarding. This transparency helps new hires plan ahead and make the best decisions about their healthcare and finances.