One can hardly turn on the television or radio without hearing about some aspect of health care reform. For larger employers, there is planning and information gathering to be done right now for the employer mandated health coverage provision effective January 1, 2014. A less-discussed aspect of reform, however, is the communication requirement for all employers subject to the Fair Labor Standards Act (FLSA). The FLSA applies to employers engaged in interstate commerce. For most, a test of not less than $500,000 in business volume applies. It also specifically covers the following regardless of business aspects: hospitals, nursing homes, schools, and government agencies. To help determine whether you’re subject to the FLSA, see www.dol.gov/elaws/esa/flsa/scope/screen24.asp.
This notice requirement had an original deadline of March 1, but was extended to October 1, 2013. By this date, all employers must automatically provide all current employees with the notice and new employees must receive it within 14 days of their start date. All employees must receive the notice regardless of their full or part time status or their current health coverage status.
The notice informs the employees about the existence of the Health Insurance Marketplace (also referred to as an “exchange”), the benefits or consequences regarding the purchase of insurance from the Marketplace, and the available coverage through their employer, if any. Temporary guidance issued May 8, 2013, provides additional details regarding the substance of the notice and also provides two model notices: one for employers with Health Plans and one for employers with no Health Plan. These models can be modified by employers, but any modified notices still must cover the minimum content requirements. Model notices can be found at www.dol.gov/ebsa/healthreform.
For further information or questions, please feel free to contact Jennifer Jenkins at 601-649-5207.
- 20 May, 2013
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