Employers: Affordable Care Act Deadline Approaching
NOTE: Per the Department of Labor as of September 13, employers must still comply with the mandates to provide notices as outlined below, but will not be penalized for failure to do so.
by Sue M. Bendavid
September 9, 2013
Under the Affordable Care Act (ACA), all employers covered by the FLSA, or Fair Labor Standards Act, are required to provide written notice of health coverage options to their current employees, before October 1st.
After that date, employers must provide the same notice to all new employees, whether they are full or part-time workers, when they are hired.
The ACA mandates the following information be provided in the notice:
- The existence of a Health Insurance Marketplace or Exchange
- Description of the Marketplace’s services
- Contact information for the Marketplace
- Employee’s potential qualification for tax credits, if employee purchases a qualified plan
- Employee may lose employer contributions, if employee purchases a plan through the Marketplace
- Information regarding the employer’s health plan or lack of health plan
Employers may find detailed information regarding the notice on the Department of Labor website.
Other Requirements of the Notice
As mentioned, the ACA notice must be in writing, but it also must be stated in language easily understood by the average employee, free of charge – via first class mail, or electronic delivery.
Employers will not need to provide notice to dependents or other individuals who may become eligible for coverage, if they are not employees.
There are model notices provided by the Department of Labor, in both English and Spanish, for employers who offer a health plan and for employers who don’t. Click the ACA Notice to Employees of Coverage Options to access these forms.
As usual, if you have any questions regarding employer compliance for this notice, please contact us.
Sue M. Bendavid is an Employer Defense Attorney, and Chair of the Employment Practice Group at our firm. Contact her via email: firstname.lastname@example.org, should you have questions regarding this notice.