Automatic Enrollment for Health Plans Repealed

On November 2, 2015, President Barack Obama signed H.R. 1314, the “Bipartisan Budget Act of 2015,” which, among other things, repealed the auto-enrollment requirement from the Fair Labor Standards Act (FLSA). Under that provision, employers that are subject to the FLSA and which employed more than 200 full-time employees would have been required to automatically enroll new full-time employees in one of the employer’s health benefits plans (subject to any waiting period authorized by law). Certain notices would have been required giving employees an opportunity to opt out of any coverage in which the employee was automatically enrolled. This requirement, which had yet to take effect, was riddled with concerns and questions regarding how employers would administer the provision.

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