June 26, 2025
The Affordable Care Act (ACA) requires employers to provide written notice to all new hires about the Health Insurance Marketplace, regardless of whether or not the employer offers its own health plan.
As of October 1, 2013, the Affordable Care Act (ACA) requires all employers subject to the Fair Labor Standards Act (FLSA) to provide a Marketplace Coverage Options Notice to every new hire.
This requirement applies to all private-sector employers with at least one employee and $500,000 or more in annual gross volume of business — regardless of whether or not the employer offers its own group health insurance plan.
If the employer offers health insurance the notice must include:
A statement that the employer does offer coverage
Whether that coverage meets the ACA’s minimum value standard
Whether the cost of the coverage is intended to be affordable
A note that employees may still be eligible for Marketplace subsidies depending on income and household size
Employers may use the Department of Labor’s “Model Notice for Employers Who Offer a Health Plan to Some or All Employees” to satisfy this requirement.
If the employer does not offer health insurance the notice must include:
A statement that the employer does not offer health coverage
Information about the availability of the Marketplace as an alternative to employer-sponsored coverage
An explanation that employees may qualify for premium tax credits and reduced cost-sharing if they purchase coverage through the Marketplace
In this case, employers may use the DOL’s “Model Notice for Employers Who Do Not Offer a Health Plan”.
Key Facts:
The notice must be given to all new hires, regardless of full-time, part-time, seasonal, or temporary status
Delivery can be paper or electronic, provided electronic delivery complies with DOL safe harbor rules
Employees do not have to sign or return the notice
There is no requirement to issue the notice annually or during open enrollment — it is a one-time requirement per hire