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Employers Required to Post Notice About Coverage Options for Employees

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The Patient Protection and Affordable Care Act (PPACA) created a new Fair Labor Standards Act (FLSA) section that requires employers to provide notice to employees with details about health insurance exchanges.

While the FAQ on Notice of Coverage Options posted on the Employee Benefits Security Administration website clarifies that there is no fine or penalty for failing to provide the notice, it states that if a company is covered by the FLSA the notice should be distributed to employees no later than October 1, 2013.

The Department of Labor developed model exchange notices for employers to meet this notice requirement. One notice should be used by employers who offer employer-sponsored health insurance to some or all of their employees, and the other should be used
by employers who do not offer coverage. The individualized information requested on page 3 of the model notice for employers who offer health coverage is optional.

Employers also must distribute the notice to any new hire within 14 days of his or her start date.

To read more about the content requirements and to be provided with model language and notices and time frames, please visit the DOL site at www.dol.gov/ebsa/newsroom/tr13-02.html.