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September 13, 2013

ACA Notices Due October 1st

The Affordable Care Act (“ACA”) requires all employers covered by the Fair Labor Standards Act (“FLSA”) to provide written notices about the new ACA health insurance exchanges (or Health Insurance Marketplaces) to all employees by October 1, 2013. The FLSA generally covers employers that have at least $500,000 in annual gross receipts and employ one or more employees who are engaged in, or produce goods for, interstate commerce. Covered employers must also provide the notice to each new employee at the time of hiring beginning October 1, 2013.

The United States Department of Labor (“DOL”) has promulgated model notices that satisfy the content requirements of the ACA-required notice.  These notices are published on the DOL website.  There is one model for employers that do not offer a health plan (FLSAwithoutplans.doc) and another model for employers that offer a health plan to some or all employees. (FLSAwithplans.doc) Employers may provide the notices electronically or via first class mail.

Employers that choose not to use the DOL model notices may use a modified notice provided the notice includes the following:

  • information regarding the existence of a new Health Insurance Marketplace as well as contact information and a description of the services provided by the Health Insurance Marketplace;
  • notice that the employee may be eligible for a premium tax credit under Section 36B of the Internal Revenue Code if the employee purchases a qualified health plan through the Health Insurance Marketplace; and 
  • a statement informing the employee that if the employee purchases a qualified health plan through the Health Insurance Marketplace, the employee may lose the employer contribution (if any) to any health benefit plan offered by the employer, and that all or a portion of such contribution may be excludable from income for federal income tax purposes. 

The DOL announced that there is no fine or penalty under the ACA for failing to provide the notices.

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If you have any questions regarding the ACA-required notices, please do not hesitate to contact us.