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Exchange Notice Must be Provided at Time of Hire

Sep 16, 2014

​As of October 1, 2013, the Affordable Care Act (ACA) requires employers to provide an Exchange Notice (also referred to as a "Notice of Coverage Options") to each new employee within 14 days of an employee’s start date.

Prior Guidance
The Affordable Care Act requires employers covered by the Fair Labor Standards Act to provide their employees with certain information about the existence of the Health Insurance Exchanges (also known as Marketplaces), including notice that the employee may lose employer health plan contributions if the employee buys coverage through the Exchange. Prior to October 1, 2013, employers were required to distribute the notice to all current employees. However, after this date, employers need only distribute the notice to employees at the time of hiring.

Although the U.S. Department of Labor announced that there is no fine or penalty under the law for failing to comply, the law still requires that employers provide the notice.

Model Notices Available
Two model notices are available from the U.S. Department of Labor to satisfy the notice requirement:

More information on the notice requirement is available from the U.S. Department of Labor.

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