Despite a misconception that the federal government’s new healthcare overhaul isn’t going into effect until 2015, in less than two weeks employers are still required to let their employees know details about the Patient Protection and Affordable Care Act (the “Affordable Care Act”).
Not all employer obligations about the law had been temporarily shelved, most notably the notice requirement.
Section 1512 of the Affordable Care Act states that employers covered by the Fair Labor Standards Act (FLSA) need to provide their current employees with written notice about the changes by October 1, 2013, and within 14 days of a new employee’s start date.
The notice should include such details as:
- Facts about the Health Insurance Marketplace
- Eligibility for premium tax credits
- Employer specific information, including the employer’s name, tax identification number, address, telephone number, and name of employer contact/s
- Whether the employer offers a health plan, and if so, which employees are eligible
Every employee (full-time, part-time, temporary or seasonal) should be given the notice regardless of whether the employer offers a health plan to the employee.
Neither a sign posted in the office about the impending changes nor a stack of “take-one” flyers meets the notice requirement.
The U.S. Department of Labor (DOL) has prepared model notices that employers may utilize.
Although the DOL advised on September 11, 2013 that employers will not be penalized for failing to comply, Janover LLC, nevertheless, suggests businesses contact their payroll providers or health insurance company for a sample of what the notice should look like.