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Health Care Reform: Employer Notice Requirements

By October 1, 2013, all employers covered by the Fair Labor Standards Act (FLSA) must provide each full and part time employee with a written notice via first class mail or electronically (as long as the requirements of the DOL's electronic disclosure safe harbor provisions are met) that includes the following information:

  • Contact information and a description of the services provided by, the new online marketplace for health benefits.
  • Notice to the employee that they may be eligible for a premium tax credit under section 36B of the Internal Revenue Code if they purchase a qualified health plan through the Marketplace
  • The notice must include a statement informing the employee that if the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer. The premium payments for employer-provided health insurance, including the portion an employee pays, may be excluded from income for federal income tax purposes.  Premiums paid for insurance purchased through the Marketplace are on an after-tax basis (i.e., not pre-tax).

For employees hired after October 1, 2013 employers must provide the notice within 14 days of an employee's start date.

To ensure that you meet the notice requirements discussed above it is recommended that you use draft model notices provided by the Department of Labor (DOL).  Note that you must still customize the model notice, adding information about your specific organization.