ACA requires employee notification by October 1

The Affordable Care Act (ACA) amended the federal Fair Labor Standards Act, indicating that employers should provide a notice to all employees of the existence of the newly formed insurance marketplace available to them along with information on how to contact the insurance marketplace to request assistance in purchasing coverage if the employee chooses to do so.

Specifically, by Oct. 1, all employers covered by the Fair Labor Standards Act, which includes all dental offices, should provide each of their employees a notice that informs the employees that there are new health insurance coverage options for purchase through Covered California. The form is designed to provide information intended to assist employees in evaluating their health and pediatric dental benefit options for 2014. Employees can access information about the options available to them through Covered California at www.coveredca.com or by calling toll-free 888.975.1142. 

The federal Department of Labor has designed standardized notices for employers to use: one notice is for employers who offer employer-sponsored health plans to some or all employees (www.dol.gov/ebsa/pdf/FLSAwithplans.pdf), and the other is for employers who do not offer employees health coverage (www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf).

Employers should keep a copy of the form they provide to each employee.  There is no fine or penalty under the law for failing to provide the notice. 

It is important to note that there are no requirements for employers with fewer than 50 employees to provide health care coverage to their employees; however, businesses with fewer than 25 employees that do provide health care coverage may be eligible for tax credits. More information on the small business tax credits can be found here: www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers.

For any additional information, please contact CDA Legislative Affairs Manager Nicette Short at nicette.short@cda.org.

Revised on 9/13/13