New Hire Enrollment Period: How Long Do New Hires Have To Enroll in Benefits?

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.