Important Legislative Updates, Part 2: Potential Date for FLSA Exemption Rules Change, I-9 Form Changes, ACA Reporting Tips, and more

Important Legislative Updates, Part 2: Potential Date for FLSA Exemption Rules Change, I-9 Form Changes, ACA Reporting Tips, and more

Last month we brought you a host of legislative updates that are both pending (changes to the FLSA Exemption Rules) and confirmed (WOTC extension to 2019). We weren’t able to cover all the changes in just one newsletter, so this month we’re bringing you even more updates.  

The potential date for the announcement of the FLSA Exemption Rules has been announced. Click through to read what to expect in terms of changes to minimum salaries and duty requirements.

The I-9 Form is set to expire, and the US Citizenship and Immigration Services (USCIS) is seeking comments on proposed changes. We’ll share with you the link to make comments.

We also have ACA Updates, including changes to the “Cadillac Tax” and 1095C reporting. Also, we’ll share with you a large carrier that may be leaving the exchange.

New FLSA Exemption Rules
The US Department of Labor is expected to leak to the media the final FLSA Exemption Rules on Friday, May 13th with the full announcement being released Monday, May 16th. According to ASA, the rules will include a base rate change to either $50,440 or at a minimum $45,000. Commission will not count toward the minimum base wage. There is also a strong possibility that the duties test will change to be more in line with current California law wherein 50% of duties must be non-exempt work. Staffing company owners are encouraged to start planning now for these upcoming changes. Follow Tricom on Twitter, LinkedIn, and Facebook, or check for the latest updates as they become available.

Form I-9
The US requires that companies only hire employees who are eligible to legally work in the United States, either US citizens or foreign citizens with the appropriate authorization. Form I-9 is the Employment Eligibility Verification Form used for verifying the identity and employment authorization of anyone hired in the US.

Currently, the USCIS is looking to revise Form I-9 and is seeking comments on their proposed changes. The public may provide comments until April 27, 2016. For more information about the changes, as well as how to submit comments, visit

ACA Form 1095-C
On March 31, 2015, large employers (with 50 or more full-time equivalent employees) were required to provide insurance recipients / employees with Form 1095-C outlining any applicable offer of health coverage. Paper copies are due to the IRS by May 31, 2016. There is a lot of confusion surrounding the required data for this form. Because of this confusion and subsequent challenges in gathering the necessary information, some companies may consider not filing the necessary forms to the IRS – this could be a costly mistake. The IRS has indicated that they will not impose penalties on companies that can show they made a good faith effort to comply with the information reporting requirements. In other words, it’s better to file incomplete information than nothing at all. The penalty for failure to do anything can be $250 per day per form, which can quickly add up to a significant amount.

ACA “Cadillac Tax” Delayed
The Cadillac Tax was supposed to go into effect in 2018 and is intended to reign in high-priced insurance polices offered through employers by placing a 40 percent tax on the portion of benefits exceeding certain dollar limits. The earliest this tax will now go into effect is December 1, 2020, although opponents continue to work to repeal the tax altogether. Employers should continue to review their health insurance offerings to determine if any changes are needed in the future to avoid the tax in the event the new timeline remains in place.

UnitedHealth Considering Pulling Out of ACA Exchanges
UnitedHealth indicated that they may pull out of the ACA exchanges after 2016. The nation’s largest insurer has also stopped marketing their ACA exchange plans to limit their exposure to losses. The company was looking at a reduction in fourth quarter 2015 revenue of nearly $425 million. An exit could impact prices in the exchanges, as UnitedHealth sells one of the two lowest-priced silver plans available to more than 40 percent of the counties in 38 states. According to USA Today, an average of 10 insurers per state are offering plans for 2016, up from nine in 2015 and eight in 2014.


We’ll keep watching for additional updates – stay tuned, or follow Tricom on Facebook, LinkedIn and Twitter for updates as they happen.