The Affordable Care Act (ACA) added a section to the Fair Labor Standards Act (FLSA) that said an applicable employer must provide a written notice to each existing employee. The original deadline of March 1, 2013 has now been extended by the Department of Labor.
Starting on October 1, 2013, the notices have to be given to new employees on the day they are hired. The notices have to be given to existing employees no later than October 1, 2013.
The notices will have information that…
- Tells employees about exchanges including a description of the services provided and how they can contact exchanges to request assistance;
- Provides notice to employees so they may be eligible for a premium tax credit if the employer’s plan does not cover at least 60 percent of the total allowed cost of benefits and the employee buys a qualified health plan through an exchange;
- Explains that if the employee buys a qualified health plan through an exchange, he or she may lose the employer contribution (if any) to any health benefit plan the employer offers, and that all or a portion of the contribution may be excluded from income for federal tax purposes.