Articles & Publications

Employers Must Provide ACA Notifications by October 1, 2013

Posted September 18, 2013 by Jamie Kent Hamelburg in Articles & Publications, Business Publications

If you're an employer, you may be required by the Affordable Care Act (the "ACA") to notify your employees by October 1, 2013, about the new Health Insurance Marketplace established under the ACA. The new notification requirement applies to you if you are subject to the Fair Labor Standards Act, meaning that you employ one or more employees who are engaged in, or produce goods for, interstate commerce with generally over $500,000 in annual business. Additionally, the Fair Labor Standards Act applies, no matter the amount of business, to institutions primarily engaged in the care of the sick, the aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state and local government agencies.

The notice should inform employees:

  • about the Health Insurance Marketplace;
  • that, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance in the Marketplace; and
  • that if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits.
  • The U.S. Department of Labor has issued two model notices to help employers comply. One model applies to employers who do not offer a health plan, and the other applies to employers who do offer a plan. 

If you are subject to the Fair Labor Standards Act, you should provide the notice to all of your current employees by October 1, 2013, and to all new employees hired after that date. For assistance as to your responsibilities to send out the written notices, consult with your Human Resources adviser, employee benefits professional, or attorney. A Department of Labor Bulletin titled Technical Release No. 2013-2 also provides helpful information.

If you’re interested in finding out more about Press, Dozier & Hamelburg, LLC’s employment law practice and information on health care notifications to employees, please see our business law and employment law pages. 

Press, Dozier & Hamelburg partners with businesses to achieve their goals, and represents families and individuals, often when they are most vulnerable. Our attorneys deliver valuable insight and counsel in the areas of business law, employment law, litigation, commercial real estate, estate planning and administration, and business succession planning. We provide all of our clients with personal service, emphasizing responsiveness, sensitivity, and respect. We are located in Bethesda and serve Maryland, Virginia and Washington, DC. 

 

Note: The content in this Blog is for informational purposes only and should not be acted upon without first consulting legal counsel. It is not intended to constitute legal advice.