State RegulationsTX specificDifficulty 1/5
Which employers are subject to the Affordable Care Act requirement to provide employees with written notice about the Marketplace?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ACA Sections 1511-1515 amend the Fair Labor Standards Act, so the Marketplace notice duty falls on employers covered by the FLSA and runs to each employee rather than only to certain categories of workers. It is not limited to particular funding arrangements, to employers that offer nothing, or to employers claiming a tax credit. A Texas employer that is subject to the FLSA should therefore build the notice into its new-hire materials.
Why the other options are wrong
- A) The funding arrangement is irrelevant. Both self-funded and fully insured plan sponsors subject to the FLSA owe the notice.
- C) The notice duty is not tied to claiming a tax credit. It follows from FLSA coverage, not from any tax election.
- D) Employers that offer coverage also owe the notice, because employees need to know whether they might do better with subsidized Marketplace coverage.
Memory hook
FLSA employers notify every employee about the Marketplace.