Section 18B of the Fair Labor Standards Act, as added by section 1512 of the Affordable Care Act, states that employers must provide each employee with notice of the health insurance coverage options available through a health insurance marketplace. The effective date of the notice requirement is Oct. 1.

It is important to note that employers still are required to provide the notices. Although there may not be any government penalties for failing to provide them, it is possible that an employee who is somehow adversely affected by not getting the notice could bring a private lawsuit or even a class-action suit.

ASA urges all staffing firms to consult with their own counsel before making a final decision regarding the potential issues that may arise if they do not provide the notice.

Below is DOL's answer to the frequently asked question, from dol.gov.

FAQ on Notice of Coverage Options

Q: Can an employer be fined for failing to provide employees with notice about the Affordable Care Act's new health insurance marketplace?

A: No. If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the health insurance marketplace by Oct. 1, but there is no fine or penalty under the law for failing to provide the notice.

The notice should inform employees

• About the health insurance marketplace

• That, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance in the marketplace
• That if they buy insurance through the marketplace, they may lose the employer contribution (if any) to their health benefits

The U.S. Department of Labor has two model notices to help employers comply. There is one model for employers that do not offer a health plan and another model for employers that offer a health plan or some or all employees:

• Model notice for employers that offer a health plan to some or all employees
• Model notice for employers that do not offer a health plan

The model notices are also available in Spanish and MS Word format at dol.gov.

The model notices are also available to download below.

Originally posted by: The ASA-Written by: Toby Malara