Employers: Mandated Insurance Notice Deadline October 1st

By October 1, 2013, all employers covered by the Federal Labor Standards Act (FLSA), regardless of size, must issue a notice to their employees about the new health insurance options available under the Patient Protection and Affordable Care Act (ACA). Health insurance options will be available through health care exchanges and marketplaces on January 1, 2014. ACA requires employers to provide notices to their current employees about these new options no later than October 1, 2013. AfterJanuary 1, 2014, employers will be required to provide such notice to new employees within 14 days of their start date. Employers must give the notice even if they do not offer health insurance coverage to employees.

Employers are covered by FLSA if they employ one or more employees who are engaged in, or produce goods for, interstate commerce with at least $500,000 in annual dollar volume of business. FLSA may also cover employees of companies that do not meet the $500,000 annual dollar volume test in any workweek employees are individually engaged in interstate commerce, the production of goods for interstate commerce, or an activity that is closely related and directly essential to the production of such goods. Wineries and wine-related companies with annual dollar volume of less than $500,000 should carefully consider if their employees are nevertheless covered by FLSA.

Information about what to include in the notice, as well as model notices, can be found on the Department of Labor’s website here (http://www.dol.gov/ebsa/healthreform/index.html). Employers may wish to modify the model forms so that they provide effective notice to their employees. Some of the language on the model form may cause additional confusion. We encourage you to consult with your legal counsel and health plan administrators for assistance.

For more information or assistance please contact Jennifer Phillips at [email protected].