An important employer compliance update:

On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015, which included a provision repealing the automatic enrollment requirement under the Affordable Care Act (ACA).  As a result, employers will not be required to automatically enroll employees in the employer sponsored group health plan.

The ACA amended the Fair Labor Standards Act (FLSA) to require employers of a certain size to automatically enroll newly-hired (and newly-eligible) employees in a health plan with an opportunity to opt out. A waiting period was permitted so long as it otherwise met legal requirements (usually 90 days) and notice to affected employees was required.  Implementation of the automatic enrollment requirements had been delayed pending regulatory guidance and is now permanently repealed.

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Automatic Enrollment of New Hires under the ACA Repealed

Dec 1, 2015

An important ACA compliance update: 

On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015, which included a provision repealing the automatic enrollment requirement under the Affordable Care Act (ACA).  As a result, employers will not be required to automatically enroll employees in the employer sponsored group health plan.

The ACA amended the Fair Labor Standards Act (FLSA) to require employers of a certain size to automatically enroll newly-hired (and newly-eligible) employees in a health plan with an opportunity to opt out. A waiting period was permitted so long as it otherwise met legal requirements (usually 90 days) and notice to affected employees was required.  Implementation of the automatic enrollment requirements had been delayed pending regulatory guidance and is now permanently repealed.

Our page under ACA compliance has been updated to reflect the change.