ACA Marketplace Notice Requirements

ACA Health Insurance Marketplace Notice: Employer Requirements

The Affordable Care Act (ACA) established Health Insurance Marketplaces to help individuals and families compare and obtain qualifying health insurance coverage.

Under Section 18B of the Fair Labor Standards Act (FLSA), covered employers must provide employees with a written Notice of Coverage Options informing them about the Health Insurance Marketplace and certain health coverage choices.

This notice requirement began in 2013 and remains an important part of employer benefits communication and compliance.

What Is the ACA Health Insurance Marketplace Notice?

The Health Insurance Marketplace Notice, also called the Notice of Coverage Options, provides employees with information about health insurance coverage available through the Marketplace.

The notice generally explains:

• The existence of the Health Insurance Marketplace.
• How employees can obtain information about Marketplace coverage.
• The potential availability of premium tax credits for eligible individuals.
• How employer-sponsored health coverage may affect Marketplace financial assistance.
• That employees who purchase Marketplace coverage may lose employer contributions toward an employer-sponsored health plan.

Which Employers Must Provide the Marketplace Notice?

The notice requirement generally applies to employers covered by the Fair Labor Standards Act.

FLSA coverage depends on factors such as the employer's business activities, annual business volume, and whether employees engage in covered interstate commerce activities.

For many businesses, enterprise coverage may apply when annual gross business volume meets the applicable $500,000 threshold. Certain institutions and government employers are also covered under specific FLSA provisions.

Employers should review applicable FLSA coverage rules rather than assuming that employee count alone determines whether the Marketplace Notice is required.

Which Employees Must Receive the ACA Marketplace Notice?

Covered employers must provide the Notice of Coverage Options to employees regardless of whether they are enrolled in or eligible for the employer's health insurance plan.

The requirement applies to:

• Full-time employees.
• Part-time employees.
• Employees who participate in an employer-sponsored health plan.
• Employees who do not participate in an employer-sponsored health plan.
• Employees who are not eligible for employer-sponsored health coverage.

Employers are not generally required to provide a separate Marketplace Notice to individuals who are not employees, such as dependents.

When Must Employers Provide the Marketplace Notice?

The ACA Marketplace Notice requirement originally became effective in 2013.

Covered employers must provide the notice to new employees at the time of hiring, consistent with applicable Department of Labor guidance.

The Department of Labor's guidance generally treats a notice provided within 14 days of an employee's start date as timely.

Employers should incorporate the Marketplace Notice into their employee onboarding procedures and review current official guidance for applicable delivery requirements.

Does the Marketplace Notice Have to Be Posted on a Workplace Wall?

The ACA Marketplace Notice is an employee distribution requirement, not a traditional workplace wall-posting requirement.

Covered employers must provide the required written information directly to employees.

Simply displaying a Marketplace Notice on a bulletin board does not automatically satisfy the obligation to furnish the notice to each employee.

This requirement is separate from traditional federal labor law posters involving minimum wage, workplace safety, equal employment opportunity, and other employee rights.

Can Employers Deliver the Marketplace Notice Electronically?

The Department of Labor permits electronic delivery when the applicable electronic disclosure requirements are satisfied.

Employers may also provide the notice in writing through methods reasonably calculated to ensure that employees receive it.

Employers should review the applicable delivery rules before relying exclusively on email, an employee portal, or other electronic communication systems.

ACA Marketplace Notice for Employers That Offer Health Insurance

The Department of Labor provides a model Marketplace Notice for employers that offer health insurance coverage to some or all employees.

This version includes information about employer-sponsored health coverage and helps employees understand how that coverage may affect their Marketplace options.

Employers should complete the applicable employer-specific information and review the notice for accuracy before distributing it.

ACA Marketplace Notice for Employers That Do Not Offer Health Insurance

The Department of Labor also provides a model Marketplace Notice for employers that do not offer a health insurance plan.

This version explains the Health Insurance Marketplace and provides information about how employees can explore available health coverage options.

Covered employers that do not offer health insurance may still be required to provide the notice.

Where Can Employers Download the Official Marketplace Notices?

The U.S. Department of Labor provides official model notices and guidance for employers.

• Department of Labor - Notice of Coverage Options
• Department of Labor - Marketplace Notice FAQs
• HealthCare.gov - Health Insurance Marketplace

The Department of Labor provides separate model notices for employers that offer health coverage and employers that do not offer health coverage.

Are There Penalties for Failing to Provide the Marketplace Notice?

The U.S. Department of Labor has stated that there is no fine or penalty under the ACA Marketplace Notice provision solely for failing to provide the notice.

However, covered employers should still follow the statutory notice requirement and applicable guidance.

Employers may have separate responsibilities involving health plan disclosures, benefits administration, and other employment laws.

ACA Marketplace Notices and Other Federal Labor Law Requirements

The ACA Marketplace Notice differs from workplace posters required under laws such as the Fair Labor Standards Act, Occupational Safety and Health Act, Family and Medical Leave Act, and federal equal employment opportunity laws.

Employers should evaluate employee notice distribution requirements separately from physical workplace posting obligations.

Labor Law Compliance Center offers Federal Labor Law Posters and additional workplace compliance products for employers throughout the United States.

Frequently Asked Questions About the ACA Marketplace Notice

Is the ACA Marketplace Notice still required?

Yes. The Department of Labor continues to identify the Notice of Coverage Options requirement for employers covered by the Fair Labor Standards Act.

Must part-time employees receive the Marketplace Notice?

Yes. Covered employers must provide the notice to employees regardless of full-time or part-time status.

Do employers that do not offer health insurance need to provide the notice?

Yes, if the employer is covered by the applicable FLSA notice requirement. The Department of Labor provides a model notice specifically for employers that do not offer a health plan.

Can the Marketplace Notice be included in new-hire paperwork?

Yes. Providing the notice during employee onboarding can help employers meet the applicable distribution timing requirements.

Does displaying the notice on a bulletin board satisfy the requirement?

Not by itself. The Marketplace Notice is intended to be furnished to employees, rather than merely displayed as a traditional workplace poster.

Does an employer have to purchase the Marketplace Notice?

No. Official model Marketplace Notices are available free of charge from the U.S. Department of Labor.

Additional Workplace Compliance Resources

Labor Law Compliance Center has supplied workplace posting products and compliance resources to employers since 2005.

For traditional workplace posting requirements, browse our State and Federal Combination Labor Law Posters.

Employers can also explore our Poster Replacement Plan for assistance managing qualifying workplace poster revisions.

For more information about workplace notices, visit the Labor Law Compliance Center homepage.

Compliance note: This article provides general educational information about ACA Marketplace Notice requirements. Employers should consult current U.S. Department of Labor guidance and applicable laws to determine their obligations.