Model Notices are Required of ALL Companies who must comply with the Fair Labor Standards Act (FLSA) by 10/01/2013
This document is for educational purposes only and is not
intended, and should not be relied upon, as tax or legal advice. Recipients of
this document should seek advice based on their particular circumstances from
an independent tax advisor or legal counsel.
Am I required to comply with the FLSA?
In general, employers who are engaged in interstate commerce
OR engaged in the production of goods for commerce OR have $500,000 or greater
GROSS revenues annually must comply REGARDLESS OF WHETHER YOU OFFER HEALTH
INSURANCE.
What do I do if I offer Health Insurance?
Fill out and provide the following Model Notice. My strong
recommendation is to work with your Insurance Broker on this. You should
include the first 2 pages. The third page is optional and I usually recommend
that employers not include it.
Page 1 – Fill out the contact information in the box at the
bottom of the form.
Page 2 – Fill out the requested information. As for
eligibility, my recommendation is to take the language directly from your
Certificate of Coverage. DO NOT check the box stating that your plan meets both
minimum value and affordability for EVERYONE unless it really does. It is okay
not to check the box.
What do I do if I DO NOT offer Health Insurance?
Fill out and provide the following Model Notice. My strong
recommendation is to work with your Insurance Broker on this. You should
include the first 2 pages. The third page is optional and I usually recommend
that employers not include it.
Fill out page 2.
Who do I give it to?
All of your employees (full time, part time, seasonal, student,
mentally challenged, etc.). Interns, 1099 employees are not considered
employees.
How do I distribute it?
It is best if you can attach it to a person’s paycheck.
Other avenues are handing it out, mailing it, or providing it electronically
(such as emailing it) PROVIDED you follow the Department of Labor’s electronic
disclosure safe harbor.
Keep track of the date of distribution and a list of the
people you distributed it to. If you are audited, this will be your lifesaver.
What about going forward?
You must provide this notice to ALL newly hired employees.
What else?
These model notices are only good through 11/30/2013. New
notices should come out beforehand.
Are there Penalties for not complying?
Yes, we guess it is $100/employee/day (nothing specific was mentioned,
so we are using the general penalty).
What if I Need More Help?
Feel free to contact me.
Robert Slayton
630-779-1144
Robert@robertslayton.com
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