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The Wagner Law Group Description 

The Wagner Law Group, A Professional Corporation, is a nationally recognized ERISA & employee benefits, estate planning, employment, labor & human resources practice. 

 

Established in 1996, The Wagner Law Group has 22 attorneys engaged exclusively in employee benefits, estate planning and employment law. Five of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.

 

 

Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Massachusetts Office 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110


Florida Office 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

San Francisco Office

Tel: (415) 625-0002

Fax: (415) 829-4385

315 Montgomery Street

Suite 902

San Francisco, CA 94104

 

www.wagnerlawgroup.com

 

 

May 16, 2013 

 State and Federal Law Alert

 

 DOL Issues Guidance on PPACA Exchange Notices

 

The DOL has issued temporary guidance on the requirement that employers issue "Exchange Notices" to employees. The Patient Protection and Affordable Care Act ("PPACA") requires certain employers to provide this Notice, which explains the coverage options available under the Health Insurance Exchanges that will open in January of 2014.

 

Employers Subject to Requirement. PPACA's Exchange Notice requirement applies to employers that are subject to the Fair Labor Standards Act ("FLSA"), including:

  • Employers who have at least $500,000 in annual business;
  • Federal, state and local government agencies;
  • Hospitals and other institutions primarily engaged in the care of the sick, aged, mentally ill, or disabled; and
  • Pre-schools, elementary and secondary schools, and institutions of higher learning.

Employers can use DOL's FLSA compliance assistance tool to determine if they are subject to the FLSA and, consequently, PPACA's Exchange Notice requirement. DOL's compliance assistance tool is at: http://www.dol.gov/elaws/esa/flsa/scope/screen24.asp

 

Content.  In general, the Exchange Notice must:

  • Inform employees of the existence of the Exchanges, describe the services provided by the Exchanges, and explain how an employee can contact an Exchange for assistance;
  • Explain that the employee may be eligible for a premium tax credit to purchase health coverage through an Exchange if the employer's plan does not meet certain requirements; and
  • Inform employees that if they purchase a qualified health plan through an Exchange, they may lose any employer contribution made towards health coverage, and that a portion of that employer contribution may be tax exempt. 

Model Notices. The temporary guidance provides the following model Exchange Notice templates:

Distribution of the Notice. Employers must distribute the Exchange Notice to all employees, regardless of plan enrollment status or part- or full-time status. New employees must be given the Notice "at the time of hiring." For 2014, this means within 14 days of the employment starting date. Employers do not have to provide a separate Notice to the employees' dependents.

 

The Exchange Notice may be furnished electronically, provided the DOL's electronic disclosure safe harbor requirements are met.

 

Compliance Date. The Exchange Notice requirement is effective October 1, 2013. It was originally slated to take effect on March 1, 2013. However, DOL delayed the effective date until this fall, so that Exchange Notice distribution efforts are coordinated with the open enrollment period for the Exchanges.

 

The temporary guidance is at: http://www.dol.gov/ebsa/pdf/tr13-02.pdf.  

 

This Newsletter is protected by copyright. Material appearing herein may be reproduced with appropriate credit.

  

Pursuant to Internal Revenue Service Circular 230, we hereby inform you that any advice set forth herein with respect to US federal tax issues is not intended or written by The Wagner Law Group to be used and cannot be used, by you or any taxpayer, for the purpose of avoiding penalties that may be imposed on you or any other person under the Internal Revenue Code.

 

This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.