Under the health care law, many employers must notify their new employees about the Health Insurance Marketplace. Employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. For 2014, the Department will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date. Model notices are available.
Information that must be included in the written notice to your employees:
If your company is covered by the Fair Labor Standards Act, you must provide a written notice to new employees informing them:
- About the Health Insurance Marketplace
- That, depending on any coverage you offer, they may be able to get lower costs on private insurance in the Marketplace based on their income
- That if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits
You must provide these notices to All New Employees. This is true regardless of their full-time or part-time status or whether they’re enrolled in your health care plan (if you have one).
There is no daily fine for failing to meet this requirement.
Get more details and guidance on employee notices in the U.S. Department of Labor’s Technical Release 2013-02.
Model notices for your use
The Department of Labor has two model notices that can help you meet the content requirements of the notice:
- Model notice if you currently offer health insurance (PDF – 207KB)
- Model notice if you currently don’t offer health insurance (PDF – 217KB)
The model notices are also available in Spanish and MS Word format.
These notices are also available on the Payroll Masters Website listed under “New Hire Forms”.
You may use one of these models or a modified version, provided the notice meets the content requirements in Technical Release 2013-02 described above.
The Fair Labor Standards Act
Wondering if the Fair Labor Standards Act applies to your company? The U.S. Department of Labor provides FLSA guidance, plus an interactive tool that will help determine whether the law applies to you.
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This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please contact your employment attorney in connection with any fact-specific situation in which you intend to take significant employment action. Readers agree that they will not hold Payroll Masters in indemnity and Payroll Masters assumes no liability. Payroll Masters is not engaged in rendering legal or accounting services. Therefore, Payroll Masters assumes no responsibility for claims arising from the use or implementation of the above information.