Department of Labor Expected to Delay the Employer

In welcome news for employers, the Department of Labor (DOL) has stated in informal comments that they plan to delay the employer requirement to send a “Notice of Exchange” to employees.

The Affordable Care Act (ACA) amended the Fair Labor Standards Act (FLSA) requiring employers to send a “Notice of Exchange” to employees by March 1st, 2013. The regulatory agencies were expected to release guidance and a model notice regarding this requirement, but to date nothing has been issued.

The exchange notice requirement is designed to inform employees of certain elements of the ACA that take effect in 2014 including:

• Information on the existence of an exchange and a description of the services provided by the exchange.
• Information that employees may be eligible for a premium tax credit through the exchange if the employer’s plan does not meet minimum essential coverage and minimum value requirements.
• Inform employees that if they purchase a plan through the exchange they would lose any employer contribution.
• Contact information for exchange.

The DOL is expected to issue a statement soon that the notice will not be required until after formal guidance is issued. Stay tuned for an update as soon as more information is available from the DOL.

In addition, you may have signed up for one of our two webinars being held next two weeks on the subject of the exchange notice. We will still be having both webinars and think you will receive valuable information about the mechanics of the exchange and subsidies, as well as prepare you to answer the questions you are likely to receive once the notice is required.

While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.

While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.

If you have any questions about this subject, please contact your Parker, Smith & Feek Benefits Team.

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