Business Owners Beware: Obligation to Notify Employees of Healthcare Marketplaces

Attention all business owners. Beginning Oct. 1, any business with at least one employee and $500,000 in annual revenue must notify all employees by letter about the Affordable Care Act’s healthcare exchanges, or face up to a $100-per-day fine. All companies, regardless of size, are required to notify their employees about the Affordable Care Act marketplaces. Going forward, letters are to be distributed to any new hires within 14 days of their starting date, according to the Department of Labor.

Earlier this summer, the employer mandate, which states that every business with at least 50 or more full-time employees must offer workers acceptable coverage or face a $2,000 penalty per-worker, per-year, was pushed back until 2015. But the Oct. 1 employee-notification deadline stands.

The U.S. Department of Labor has posted information about the notification requirement on its website and has provided model notices that can be used both by employers who offer insurance (PDF) and those who do not offer insurance (PDF).

The one- to three-page model notices can be downloaded, filled out, and printed, either for distribution in the office or for mailing to employees’ homes. Those forms should be returned to the employer and submitted by the employer. Employees who come on board after Oct. 1 must get the notice within 14 days of their start date with the company. The first page is required and can be submitted via US mail or filed electronically. The second and third pages of the model notices are optional. Small businesses are encouraged to include the upper portion of page 2, which describes the insurance coverage provided by the company, but to leave off the rest of that page and page 3.

PBA’s Government Affairs team has compiled a list of helpful documents regarding the Affordable Care Act which can be accessed at probeauty.org/healthcarereform. This page is updated frequently with ACA updates, news and resources to assist members of the industry.

About PBA Government Advocacy

The Professional Beauty Association (PBA) advocates for the rights of every member and is dedicated to tracking, introducing and responding to legislation at both the state and federal levels with potential to affect the beauty industry. Along with our Government Advocacy program, PBA provides our members with Education, Signature Events, Charitable Outreach, Research and Business Resources. Visit probeauty.org for more information.