The Affordable Care Act's Marketplace Notice: What Employers Need to Know

On May 8, 2013, the Department of Labor (“DOL”) issued long-awaited guidance on the notice that must be provided to employees by October 1, 2013, the first day of the Health Insurance Marketplace open enrollment period (the “Marketplace Notice”). The Marketplace Notice requirement applies broadly to any employer that is subject to the Fair Labor Standards Act (“FLSA”), regardless of how many employees the employer has or whether it sponsors a group health plan. This Alert describes the Marketplace Notice requirement under the Patient Protection and Affordable Care Act (the “Affordable Care Act”), the key provisions of the DOL guidance, and practical considerations not directly addressed by the guidance.

The Statutory Requirement -

Beginning January 1, 2014, individuals and employees of small businesses will be able to purchase health insurance coverage through a Health Insurance Marketplace, previously referred to under the Affordable Care Act’s statutory language as an Exchange (the “Marketplace”). The Affordable Care Act added provisions to the FLSA requiring most employers to provide written notice to employees regarding the coverage options available through the Marketplace.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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