Coverage Options

The Affordable Care Act (ACA) amended the Fair Labor Standards Act (FLSA) to include disclosure, non-retaliation and automatic enrollment provisions. The ACA provisions apply to employers that are subject to the FLSA. The DOL provides guidance on their website relating to the applicability of the FLSA, including online toolkits.

Notice to Employees of Marketplace Coverage Options (Exchange Notice)

Content

To satisfy the content requirements, the DOL has provided two model notices, which include an optional section for employee specific information. In order to complete the notice, employers that offer coverage will need to know whether their plan is “affordable” and provides “minimum value” as those terms are defined under the ACA and its regulations. See Notice of Coverage Options in the Notices: All Employees task.

Providing Notice to Employees

The notice must be provided to new employees at the time of hire. The DOL will consider a notice to be provided at the time of hire if the notice is provided within 14 days of an employee’s start date.

Employers must provide a notice of coverage options to each employee, regardless of plan enrollment status or of part-time or full-time status. It does not have to be provided to retirees or COBRA beneficiaries, In addition, employers are not required to provide a separate notice to dependents or other individuals who are or may become eligible for coverage under the plan, but who are not employees.

Employers may hand deliver the notice or it may be provided by first-class mail. Alternatively, it may be provided electronically in accordance with the DOL’s electronic disclosure safe harbor.