No employer penalties imposed for lack of health exchange notice: DOL

Employers will not be fined by federal regulators if they fail to distribute to employees health care reform law model notices about the availability of public health insurance exchanges.

Using a question-and-answer format, the U.S. Department of Labor said Wednesday that while employers should provide such notices to employees by Oct. 1, “there is no fine or penalty under the law for failing to provide the notice.”

While the Patient Protection and Affordable Care Act is clear that penalties cannot be imposed, “Internet-based rumors have circulated recently that employers could face penalties of up to $100 per day for failing to distribute the notice,” Lockton Cos. L.L.C.'s health reform advisory practice said in a bulletin.

In May, federal regulators released model notices that employers can provide to employees to satisfy the exchange notification requirement.