Despite the ongoing efforts to weaken and undermine the Affordable Care Act (the ACA), Federal agencies are still charged with enforcing its mandates. Recently the results of a government survey regarding employer compliance efforts was released. The findings are quite disturbing and, for employers in the crosshairs of an audit, they should be alarming.
71% of employers are out-of-compliance with ERISA mandates. ERISA is the umbrella legislation addressing employee benefits. Failure to comply can cost an employer a minimum of $15,000 +.
91% of employers are non-compliant with COBRA law requirements. COBRA addresses an employee’s right to continue coverage when they lose that coverage through an employer. Failure to properly notify each employee and their covered dependents of their COBRA rights can cost $100 per day per affected individual.
72% of employers do not have an updated / current Employee Handbook. Failure to clearly inform your employees of your company’s policies can lead to very expensive lawsuits, especially with a disgruntled employee.
43% of employers do not comply with HIPAA regulations. HIPAA addresses privacy and harassment issues in the workplace. Besides per employee / per diem penalties, an employer can also face punitive lawsuits again brought be a disgruntled employee.
If audited the Department of Labor and the IRS will review all of the above and more. So, an important question you need to ask yourself is, is your company fully compliant and out of harm’s way? Our clients are!