Obama Administration Delays Implementation of Employer Mandate for One Year
The Obama administration has posted a release to its website advising that it is delaying the collection of penalties for employers that fail to provide affordable coverage to employees. The employer mandate was scheduled to go into effect on January 1, 2014. The White House release provides that the penalty not be enforced until January 1, 2015.
The White House cites the complex reporting requirements associated with the mandate as the reason for the delay. The White House explained that it intends to revamp the reporting requirements over the next year. According to the release, the one year delay “…allows employers the time to test the new reporting systems and make any necessary adaptations to their health benefits while staying the course toward making health coverage more affordable and accessible for their workers.”
We recently issued an Alert explaining how the mandate will work. That Alert advised that the mandate will apply beginning in 2014. Readers should consider the one-year delay described above in conjunction with that Alert.
If you have any questions, please contact the Hiscock & Barclay lawyer with whom you normally work or any attorney in our Labor & Employment practice area.