Affordable Care Act Notification Requirements

Affordable Care Act Notification Requirements

Part One – Important Notice:

Please note that now that the Trump administration is in office, there is a strong possibility that there will be major changes to the Affordable Care Act, including a possible repeal. Please check to keep current on this important issue in this fluid regulatory environment.

For more information on current ACA requirements, visit the National Restaurant Association’s Health Care Headquarters at

Part Two – ACA Notification Requirements

Employer requirement to provide notification on exchanges

Employers are mandated under the ACA to notify employees, in writing, about the healthcare marketplaces or exchanges.

All employers, under the Fair Labor Standards Act (FSLA), must provide this notice as of 2014. The FLSA applies to all employees in enterprises with annual sales of $500,000 or more. As well as any employee who works in interstate commerce or in the production of goods for interstate commerce, regardless of annual sales.

This provision of the ACA creates a new section 18B of the FLSA that requires employers to notify employees, in writing, about exchanges and federal subsidies to buy private health plans through exchanges. The notices also must inform employees who opt to buy coverage through exchanges (instead of employer-sponsored plans) that they could lose their employer’s contribution (if any) to employer-sponsored coverage. Finally, the notice must explain that health plans bought on exchanges don’t have the same tax benefits as employer-sponsored coverage.

It is important to note employers MUST provide the FLSA notice in writing, “in a manner calculated to be understood by the average employee.” If employers are unsure of how to fulfill this requirement, look at the section below for notification models provided by the Department of Labor.

Employers do not have to use the model notices. As long as employers provide all three pieces of information outlined under the ACA they will meet the law’s notification requirement.

Employers also must provide the notice to all employees, including full-time, part-time, seasonal and temporary employees.

Employers are required to provide written notice within 14 days of hiring starting in 2014.

The notification MUST be in writing and it is recommended employers have employees sign the notification to show they received it.

To read more about employee healthcare requirements and the notification go to the DOL website at:

Model notices for employers

For employers with a health insurance plan, see

For employers without a health insurance plan, see id=13853

Additional Information

For additional information go to the Washington Hospitality Association healthcare resource page:

Reference: United States Department of Labor Technical Release No. 2013-02



Rev. 1/31/17

This article is an excerpt from the Handbook for Excellent Restaurant Operations (HERO), published by the Washington Hospitality Association.  Want a hard copy of the whole manual?  It’s one of the many benefits of becoming a member!  Find out more about joining the Washington Hospitality Association here.

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