After multiple reports from news agencies, indicating that employers may be fined for not making their employees aware of the insurance exchanges opening on Oct. 1, the Department of Labor recently stated that this punishment won't be coming after all.
In the the "Frequently Asked Questions" portion of DOL's website, the new posting stated that, contrary to what had been widely reported, business owners will not have to pay a fee for failure to provide their workers with a written notice of the Affordable Care Act's new insurance marketplaces.
However, the DOL still said that workers ought to make them aware of this fact nonetheless.
"If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013," according to the DOL. "But there is no fine or penalty under the law for failing to provide the notice."
In addition to apprising employees of the exchanges, DOL also said that, depending on what their workers make and what employee benefits are offered to them, that they may be able to obtain a plan at a lower cost through the marketplace rather than using employer-based insurance. Should they decide to take this option, though, they should also be warned that they will have to pay for coverage the whole way. In other words, their employer won't contribute to their health benefits.
Given the fact that business owners won't be docked a fine for not making their employees aware of the exchanges, some may think that they're in the free and clear. But not according to Keith McMurdy, a New York-based attorney. He told BenefitsPro that non-compliant employers may be tracked down by the Internal Revenue Service, or the wage and hour division of the DOL.
