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Changes to the Fair Labor Standards Act May Affect Employee Benefits

June 15, 2016

Authors

benefitsbclp

Changes to the Fair Labor Standards Act May Affect Employee Benefits

June 15, 2016

by: benefitsbclp

200270748-001The United States Department of Labor recently issued a Final Rule updating the Fair Labor Standards Act (the “FLSA”) that includes an increase in the standard salary level and that will take effect December 1, 2016. Under the FLSA, certain employees may be exempted from overtime pay for working more than 40 hours per week if their job duties primarily involve executive, administrative, or professional duties and their salary is equal to or greater than the required salary levels.

Among other changes made by the Final Rule, the threshold salary levels have been dramatically increased and will continue to be automatically updated every three years in the future. Prior to the Final Rule, the standard salary level was $455/week or $23,660/year.  As of December 1, 2016, the standard salary

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UPDATE: Health Insurance Marketplace Notice: RELAX!…BUT DON’T PLAY DEAD

September 17, 2013

Authors

Serena Yee and Lisa Van Fleet

UPDATE: Health Insurance Marketplace Notice: RELAX!…BUT DON’T PLAY DEAD

September 17, 2013

by: Serena Yee and Lisa Van Fleet

Health care reform created a new Section 18B of the Fair Labor Standards Act (“FLSA”) to require employers to furnish notice of the coverage options available through Health Insurance Marketplace to employees. The Secretary of Labor delegated responsibility for regulations under the new law to the Department of Labor’s Employee Benefits Security Administration (“EBSA”).

The new notice requirement was to take effect on March 1, 2013.  However, in a set of FAQs published on January 24, 2013, the EBSA concluded that the notice requirement should be delayed for several reasons.  The EBSA anticipated that distribution of the notices would take place in the late summer or fall of 2013, which would coordinate with the open enrollment period for Exchanges (see our earlier post).

On May 8 2013, the EBSA published Technical Release 2013-02, which offered guidance on various aspects of the marketplace notice, including the required content,

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Marketplace Notice Deadline Looming – Who Can Send it?

September 9, 2013

Authors

benefitsbclp

Marketplace Notice Deadline Looming – Who Can Send it?

September 9, 2013

by: benefitsbclp

As most group health plan administrators are well aware, the Marketplace Notice (i.e., notice of coverage options) is required to be distributed to existing employees  by no later than October 1, 2013.

As discussed in our previous Client Alert  and blog entry, the DOL issued model notices and guidance regarding which employers must comply with this requirement, which employees must receive the notice and the notice’s required content.  Links to the models are available on benefitsbclp.com.  A more thorough discussion of  employer’s notice obligation is provided in our Client Alert which can be accessed here. Until last week, one open question was whether an employer could satisfy its obligations to provide the Marketplace Notice by engaging another entity (such as an insurer, multiemployer plan, or third-party administrator) to send the Marketplace Notice on its behalf.

In its Sixteenth set of PPACA-related FAQs issued on

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Model Exchange Notice and Revised COBRA Election Form

May 20, 2013

Authors

Chris Rylands and Lisa Van Fleet

Model Exchange Notice and Revised COBRA Election Form

May 20, 2013

by: Chris Rylands and Lisa Van Fleet

As noted in our client alert, the DOL recently released guidance on the Exchange/Marketplace notice required to be issued to existing employees no later than October 1, 2013.  Followers of PPACA developments will recall that this notice was originally scheduled for distribution in March 2013, but was delayed at the last minute.  In connection with this guidance, the DOL also revised the model COBRA election notice.  Links to the DOL guidance and model documents are provided below.

The alert describes the requirements of the guidance, but the highlights are summarized below:

  • All employers subject to the Fair Labor Standards Act are required to provide this notice, regardless of whether they provide health coverage or not.  Generally, you’re subject if (i)  you employ one or more employees who are engaged in, or produce goods for, interstate commerce or (ii) you are a hospital; a resident care
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