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$100 A Day Obamacare Penalty for Small Business Owners

Do you have one or more employees? Do you have $500,000 or more in annual revenues? If so, you must provide a one-time written notice about health insurance marketplaces to all of your current employees before October 1, 2013 or face $100 a day fine.

Notices you can use with your English and Spanish speaking employees are set out below.

You may have though that because you have fewer than 50 full time employees and are not required to comply with the employer mandate, the Obamacare requirements do not apply to you. That is wrong. Buried in the bill and its associated regulations is an amendment to the Fair Labor Standards Act (FSLA) requiring employers subject to the act (1+ employees & $500,000 + in revenues) to send the one time notice.

You must send the required notices to all employees, full time and part time. You may even be required to send notices to independent contractors, temporary workers and leased works, depending on the FSLA’s “economic reality” test.

Two notices, with Spanish translations, are set out below. One is for employees that are covered under employer sponsored health plans. The other is for employees that are not covered.

Mail these notices to each of your employees before October 1, 2013. There is an option for electronic notice if you meet the same requirements for electronic distribution of ERISA plan disclosures. If you have any questions about electronic distribution, consult an attorney or simply send the notices below to each employee by mail.

New employees hired after October 1, 2013 and through December 31, 2014 must be provided a similar notice within 14 days of the start of their employment. The Department of Labor may change the timing requirements for new employees hired in 2015 or later.

You also should be aware that the COBRA notice requirements have changed as well. A sample COBRA notice, in English and Spanish, can also be found below.

This Obamacare notice requirement is taking small businesses, their attorneys and their other advisors by surprise. You may now see some mention of this in the popular media. Still, there will no doubt be thousands if not hundreds of thousands of businesses that fail to meet this deadline simply because they do not know about it.

DO NOT be one of those businesses. Print and mail the required notices before October 1, 2013.




Employee Notice (with health coverage)

   FLSA With Plans English

   FLSA With Plans Spanish


Employee Notice (without health coverage)

   FLSA Without Plans English

   FLSA Without Plans Spanish


COBRA Notice

   COBRA Election Notice English

   COBRA Election Notice Spanish



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