DOL clarifies that no penalties apply for failure to provide ACA notices about exchanges

HRS Insight

In a recent frequently asked question (FAQ), the Department of Labor (DOL) confirmed that employers won't be subject to any fine or penalty for failing to provide a ‘Notice of Coverage Options’ to employees. Under the Affordable Care Act (ACA), employers covered by the Fair Labor Standards Act (FLSA) are supposed to provide their employees a written notice about the health insurance exchanges (the Marketplace) by October 1, 2013. Model notices are available from the DOL, although many employers are choosing to modify them. This announcement should relieve employer concerns that they might incur government fines or penalties for failing to provide the notices as prescribed.

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