Fair Labor Standards of Care: Examining the Affordable Care Act’s Changes to the FLSA

Since it was signed into law in March 2010, the Patient Protection and Affordable Care Act, or “ACA,” has been a focus of national attention.  While most have zeroed in on the employer mandate to provide health insurance, there are many other important changes, including to the FLSA.  In this post, we focus on how ACA amended the FLSA and what those changes mean for employers.

Auto-Enrollment.  ACA added new Section 18A to the FLSA, which requires employers covered by the FLSA that have more than 200 full-time employees to automatically enroll new full-time employees in one of the employer’s offered health plans (if any).  Employees must also receive an opportunity to “opt out.”  In February 2012, the DOL indicated this requirement will not be enforced until regulations are issued.  It remains uncertain when this mandate will become effective. 

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