Employer Notice Requirement Under Obamacare

By November 8, 2013Articles

With the creation of the Federal Patient Protection and Affordable Care Act, or “Obamacare,” most employers will now be required to provide notices to their employees regarding their healthcare options under “Covered California.” Covered California is this state’s version of the health insurance marketplace where consumers can go to shop for private health insurance.

As of October 1, 2013, all employers subject to the Fair Labor Standards Act (“FLSA”) are required to provide notice to all current and future employees. The FLSA generally applies to all businesses that generate $500,000 or more in sales each year. The notice should inform employees about the Health Insurance Marketplace, that they may be able to get more affordable insurance under the program depending on their income, and that if they buy insurance through the marketplace, they may lose their employer’s contribution to their health benefits.

Although the United States Department of Labor (“DOL”) has confirmed that there will be no penalties or fines for business that have missed the deadline, employers are urged to provide the required notices as soon as possible.

In an effort to ensure compliance with the new requirement, the DOL created two notice templates, one for employers who offer a health plan, and one for employers who do not offer a health plan. Employers can download and print the notices from the following link:

http://www.dol.gov/ebsa/faqs/faq-noticeofcoverageoptions.html