Beginning Jan. 1, 2014, individuals and small businesses have access to insurance coverage through the Affordable Care Act’s (ACA’s) Health Insurance Exchanges, which are also known as Marketplaces. The 2016 open enrollment period through the Exchange runs from Nov. 1, 2015, through Jan. 31, 2016.
Found in Section 18B of the Fair Labor Standards Act (FLSA), the ACA requires employers to provide all new hires and current employees with a written notice about the ACA’s Exchanges, which the Department of Labor (DOL) calls the “Notice to Employees of Coverage Options.” Employers were generally required to begin providing employees with an Exchange Notice by Oct. 1, 2013.
This ACA Overview provides a summary of the ACA’s Exchange Notice requirement, including the employers who are affected, deadlines for providing the notice and specific content requirements.
Compliance Deadlines
- Employers were required to provide the Exchange Notice by Oct. 1, 2013, to individuals who were current employees before then.
- There is no requirement to provide the Exchange Notice to current employees on an annual basis.
- However, this is a continuing requirement, because the notice must be provided to each new employee at the time of hiring.
Penalties
- A DOL FAQ provided that there is no fine or penalty under the ACA for failing to provide the Exchange Notice.
- This means that employers cannot be fined for failing to provide employees with notice about the ACA’s Exchanges.
Click to download the full ACA Compliance Overview.
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