Obama administration won’t fine employers who miss the Oct. 1 deadline, but government still expects employers to comply.
By Anthony P. Raimondo, attorney, Western United Dairymen Weekly Update
Under the Patient Protection and Affordable Care Act (often referred to as "Obamacare"), employers face an Oct. 1, 2013 deadline to circulate a notice to their workers about the health insurance exchanges that will enter the insurance marketplace. These exchanges will sell health insurance to those whose employers do not provide coverage, among others.
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Many employers have been concerned by a news report earlier this month warning that failure to provide the notice could result in fines of $100 per day for each day of delay in providing the required notice. On Sept. 13, 2013, the Obama administration announced it will not fine employers who miss the deadline, but indicated that the government still expects employers to comply.
All businesses that have at least $500,000 in revenue a year or are engaged in interstate commerce have to comply with the requirement. In addition, employers must distribute the notice to new workers within 14 days of being hired.
The U.S. Department of Labor has issued sample notices for employers to use as a basis for the notice, one for employers that offer health benefits and one for employers who do not. The notices can be downloaded here.
The employer mandate to provide health insurance (for business with 50 or more employees) has been delayed until 2015. Employers should provide the required notice to employees by Oct. 1, 2013, if possible, but if not, they should use all reasonable diligence to provide the notice as soon as possible.
The goal of this article is to provide employers with current labor and employment information. The contents should not be interpreted or construed as legal advice or opinion. For individual responses to questions or concerns regarding any given situation, the reader should consult with Anthony Raimondo at McCormick Barstow LLP in Fresno at (559) 433-1300.