The Affordable Care Act's (ACA) "employer mandate" has been delayed until 2015, however, covered employers are required to take certain actions now. Health insurance exchanges are scheduled to start offering health coverage to individuals and employees of small businesses starting January 1, 2014. Open enrollment in these Health Insurance Marketplaces will begin on October 1, 2013. The ACA requires employers to send a Notice to their current employees advising them about the Health Insurance Marketplaces by October 1, 2013.
Which Employers are Subject to the Notice Requirement?
The ACA added a provision to the federal Fair Labor Standards Act (FLSA), requiring all employers subject to the FLSA to send the Marketplace Notice. In general, the FLSA applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most companies, a threshold of at least $500,000 in annual volume applies.
To Whom Must Employers Send the Marketplace Notice?
Covered Employers must send or provide the Notice to all employees, regardless of whether they are eligible for or enrolled in coverage under an employer-sponsored health plan. Therefore, employers must send or provide the Marketplace Notice to part-time, seasonal or temporary employees in addition to sending or providing the Notice to full-time employees.
When Must Employers Send the Marketplace Notice?
As stated above, covered employers are required to send or provide the Marketplace Notice to each current employee by October 1, 2013. Employers must also send or provide the notice to new employees hired after October 1, 2013 within 14 days of such employee's date of hire.
How Must the Notice be Delivered to Employees?
Covered Employers must provide the Marketplace Notice to employees in writing in a manner calculated to be understood by the average employee. The Marketplace Notice may be sent to employees by first-class mail. Alternatively, employers may provide the Notice electronically if the requirements of the Department of Labor's electronic disclosure safe harbor are met.
For further information on the Marketplace Notice, to include the requirements for what the Notice must say, information on Multi-employer plans and the consequences an employer might face for failing to provide employees with the Marketplace Notice, please consult your employment lawyer or health plan professional.
