Aug 7, 2013
What is your role as a small business owner in informing your employees about the health care reform options?
Under the Affordable Care Act, employers must provide each employee, regardless of plan enrollment status or whether the employee is part-time or full-time, with a written notice informing the employee of three things:
This applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most firms, a test of not less than $500,000 in annual dollar volume of business applies. In other words, the Fair Labor Standards Act (FLSA) generally does not cover businesses with less than $500,000 in annual dollar volume of business.
However, the FLSA covers the following entities regardless of business volume:
Beginning October 1, 2013, employers are required to provide the notice to each new employee at the time of hiring of their coverage options. For 2014, as long as the notice is provided within 14 days of an employee’s start date, it will be deemed to have been provided at the time of hiring. For current employees before October 1, 2013, employers must provide the notice by October 1, 2013.
The notice must be written in such a way as to be understood by the average employee and may be provided via first-class mail or electronically. The Department of Labor provided two model notices that satisfy the content requirements – one for employers that do not offer a health plan and one for employers that offer a health plan to some or all employees.