Summary
Requires employers of over 200 employees to default enroll new full-time employees into health insurance coverage provided by the employer. Employees must be given sufficient notice and the opportunity to opt out.
Implementation Status
On February 9, 2012, the Department of Labor posted a Technical Release/FAQ regarding automatic enrollment, which included guidance that this requirement will not be in effect for 2014.
Statutory Text
SEC. 1511. AUTOMATIC ENROLLMENT FOR EMPLOYEES OF LARGE EMPLOYERS.
The Fair Labor Standards Act of 1938 is amended by inserting
after section 18 (29 U.S.C. 218) the following:
‘‘SEC. 18A [29 U.S.C. 218a]. AUTOMATIC ENROLLMENT FOR EMPLOYEES
OF LARGE EMPLOYERS.
‘‘In accordance with regulations promulgated by the Secretary,
an employer to which this Act applies that has more than 200 fulltime
employees and that offers employees enrollment in 1 or more
health benefits plans shall automatically enroll new full-time employees
in one of the plans offered (subject to any waiting period
authorized by law) and to continue the enrollment of current employees
in a health benefits plan offered through the employer. Any
automatic enrollment program shall include adequate notice and
the opportunity for an employee to opt out of any coverage the individual
or employee were automatically enrolled in. Nothing in this
section shall be construed to supersede any State law which establishes,
implements, or continues in effect any standard or requirement
relating to employers in connection with payroll except to the
extent that such standard or requirement prevents an employer
from instituting the automatic enrollment program under this section.’’.