Offering employee benefits isn’t just about providing value—it’s also about meeting your legal obligations. In California, HR compliance goes hand-in-hand with health insurance, payroll, and workplace regulations. Falling behind can lead to costly fines, audits, and frustrated employees.
Here are the key areas every small employer should monitor:
1. ACA Compliance
If you have 50 or more full-time equivalent employees, you’re considered an Applicable Large Employer (ALE) under the Affordable Care Act (ACA). This means:
- You must offer affordable, minimum essential coverage to full-time employees.
- You must file IRS forms 1094-C and 1095-C each year.
Even smaller employers can face reporting or disclosure requirements, especially if offering group coverage.
2. ERISA Requirements
If you offer health, dental, vision, or life insurance, you must comply with the Employee Retirement Income Security Act (ERISA). This includes:
- Creating and distributing a Summary Plan Description (SPD)
- Maintaining Plan Documents
- Following fiduciary rules and timelines for COBRA, claims, and appeals
3. COBRA & Cal-COBRA
- COBRA applies to employers with 20+ employees; Cal-COBRA extends similar rights to smaller employers in California.
- You’re responsible for offering timely continuation coverage notices to eligible employees.
4. HIPAA Privacy
If you’re handling employee health information (especially through self-funded plans or HRAs), HIPAA privacy rules may apply. Proper safeguards and employee training are essential.
5. HR Policies & Notices
- Required labor posters
- New hire notices (e.g., exchange notification under ACA)
- Annual notices like the Medicare Part D creditable coverage notice
At Rice Insurance Benefits, we don’t just help you choose a benefits plan—we help you stay compliant and avoid common HR pitfalls.
Have questions about ACA rules, ERISA documents, or COBRA notices?
Contact Rice Insurance Benefits. I’m happy to answer any questions you may have.
