Below please find the distribution and delivery requirements.
Any employer who is subject to the Fair Labor Standards ACT of 1938 is required to distribute the Exchange Notice to its employees. Employers who do not currently offer health care coverage to their employees and/or are not subject to the Employer Mandate under the ACA are not exempt from this notification requirement.
ALL employees must be provided with an Exchange Notice, including employees who are not eligible to enroll in employer-sponsored benefits. A few exceptions do apply. A notice does not need to be issued to:
- Spouses and dependent children covered under an employer’s plan,
- COBRA participants, and
- Retirees (even if they are enrolled in an employer-sponsored health plan).
When it comes to getting the Exchange Notice into the hands of employees, the updated guidance provides employers with two options: 1) First Class Mail and 2) Electronic Distribution. You may choose one option for all employees or a combination of both (depending on your employee population). Please note that electronic distribution is only permissible if the following DOL regulations are satisfied:
- Access to the electronic delivery system is an integral part of the employees’ work duties.
- A statement regarding the importance of the Exchange Notice is provided.
- A free paper copy is made available upon request.