Legislative Update

The Lead Summer 2015 - Lifetime Benefit Solutions

Automatic Enrollment for Health Plans Repealedundefined

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2, 2015, President  Barack Obama signed H.R. 1314, the  “Bipartisan Budget Act of 2015,” which,  among other things, repealed the auto- enrollment requirement from the Fair  Labor Standards Act (FLSA).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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