An Applicable Large Employer (ALE) is a business that employs 50 or more full-time or full-time equivalent (FTE) employees and is subject to employer shared responsibility provisions under the Affordable Care Act (ACA). ALEs are required to offer affordable health insurance coverage to eligible employees and comply with IRS reporting requirements to avoid penalties. Industries such as manufacturing, retail, logistics, and facility management often fall under ALE classification due to their large workforce, contract staffing, and gig employment models.

For companies managing contract workers, gig employees, and blue-collar workforce, ALE compliance is critical to avoiding fines, maintaining workforce benefits, and adhering to federal regulations. Employers utilize HR compliance tools, automated payroll systems, and benefits administration software to track employee eligibility, coverage affordability, and reporting obligations. A well-structured ALE compliance strategy ensures legal adherence, financial stability, and a competitive employer reputation, helping businesses attract and retain talent effectively.