Fair Labor Standard Act: October 1st Deadline

Though the regulation under the employer mandate to offer qualified coverage to full-time employees or risk a possible penalty has been delayed to January 1, 2015, employers should not decode this as a sign to stray off the road to complying with the Affordable Care Act. Among other nitty-gritty matters you should be concerned with, there is an upcoming deadline that must be met to avoid violating the regulations of the Fair Labor Standard Act (FLSA) in accordance to the Affordable Care Act. By October 1, 2013, the FLSA requires all employers to provide a notice to employees with information about the available exchanges. Although the exchanges are not fully functional, the notice must be given to all employees by the deadline, despite their employment status. Meaning all employees must receive a notice whether they are part-time or full-time employees. Upon delivering the notice, there are certain requirements that the notice must include in order to meet the FLSA’s requirements. One of the requirements is that the notice must be written in language that is understandable by the average employee.

Additionally, the notice must be given free of charge and it must be issued automatically. For new hires, the notice is within the requirements of the FLSA if it is provided within 14 days of the employee’s start of employment. More specifically, the notice must:

      

• Inform the employee of the Marketplace, along with details of the assistance available to the employee through the Marketplace, and information on how to contact the Marketplace upon requested assistance.
• Inform the employee that if the employer’s share of the coverage plan is less than 60 percent, then the employee may be able to apply for a federal premium tax credit if a qualified health plan is purchased through the exchanges.
• Inform the employee that in the event they choose to purchase a qualified health plan through the Marketplace, then they may risk the loss of the employer contribution to any health benefits plan offered, and that all or a fragment of the employer contribution may be excludable from income for Federal income tax purposes.  

To make the distribution of the notice more convenient for employers, the Department of Labor (DOL) has released model notices for guidance. Provided by the DOL are two notices, one formatted specifically for employers who plan on offering coverage, and one for employers who do not plan to offer coverage. At this point you should have a clear idea of which form is appropriate for you. However, if you are an employer who remains uncertain on your coverage plan, I advise you to make an appointment with us in the near future to discuss your coverage plans. For those employers who have decided on a coverage path, you should be aware that the same form must be handed out to all employees, including new hires. In brief, please note this is only an overview of the FLSA notice requirements. There may be additional requirements not previously noted. For further guidance, please consult us about your specific concerns so we may properly help you meet this deadline. 

Mario K. Castillo

Email: mcastillo@montyramirezlaw.com

Telephone: 281.493.5529

Website: http://www.montyramirezlaw.com/