Employers Must Notify Employees of Healthcare Exchanges by October 1– September 24, 2013

The U.S. Department of Labor (DOL) recently issued Technical Release No 2013-02. This release provides temporary guidance to “applicable employers” on notifying employees of health care coverage options that will be available beginning January 1, 2014. Even though the options are not available until 2014, employers must notify current employees no later than October 1, 2013.

The notification requirement applies to employers who are subject to the Fair Labor Standards Act, which generally includes employers with at least $500,000 in annual sales and who are engaged in interstate commerce. The notice must be provided in writing, such as first-class mail or email, in a manner that can be understood by the average employee. Beginning on October 1, 2013, employers must begin providing a notice to each new employee at the time of hire.

Employers can visit http://www.dol.gov/ebsa/healthreform to access model notices provided by the DOL. There is a model notice for employers who offer health plans to some or all employees and a separate notice for employers who do not offer health plans to their employees.

 

This communication is for information only, and any action should only be taken after a detailed review of the specific situation and appropriate consultation.

Notwithstanding that these materials do not constitute legal, accounting or other professional advice, as may be required by United States Treasury Regulations and IRS Circular 230, you should be advised that these materials are not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding penalties that may be imposed under federal tax laws. No written statement contained in these materials may be used by any person to support the promotion or marketing of or to recommend any federal tax transaction(s) or matter(s) addressed in these materials, and any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor with respect to any such federal tax transaction matter.