Notice to Employees of Coverage Options Under Fair Labor Standards Act Section 18B

Many provisions of the Patient Protection and Affordable Care Act (Affordable Care Act) that became effective in 2014 were designed to expand access to affordable health coverage. These include provisions for coverage to be offered through a Health Insurance Marketplace (Marketplace), premium tax credits to assist individuals in purchasing such coverage, employer notice to employees of coverage options available through the Marketplace, and other related provisions. Since January 1, 2014, individuals and employees of small businesses have had access to affordable coverage through a competitive private health insurance market – Health Insurance Marketplace. The Marketplace offers “one-stop shopping” to find and compare private health insurance options. Section 1512 of the Affordable Care Act created a new Fair Labor Standards Act (FLSA) section 18B [29 USC 218b] requiring a notice to employees of coverage options available through the Marketplace. Section 18B of the FLSA, as added by section 1512 of the Affordable Care Act, generally provides that, in accordance with regulations promulgated by the Secretary of Labor, an applicable employer must provide each employee at the time of hiring a written notice: Informing the employee of the existence of Exchanges including a description of the services provided by the Exchanges, and the manner in which the employee may contact Exchanges to request assistance; If the employer plan's share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs, then the employee may be eligible for a premium tax credit under section 36B of the Internal Revenue Code (the Code) if the employee purchases a qualified health plan through an Exchange; and If the employee purchases a qualified health plan through an Exchange, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.

The latest form for Notice to Employees of Coverage Options Under Fair Labor Standards Act Section 18B expires 2026-12-31 and can be found here.

Notice to Employees of Coverage Options Under FLSA 18B (Private Sector)

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