Navigating HR regulations can be complex, especially for small businesses. Staying compliant with the Affordable Care Act (ACA), Family and Medical Leave Act (FMLA), and Wage and Hour laws all have important reporting and communication deadlines requiring accurate tracking, and formal communication. Here’s a breakdown of common compliance challenges and how to stay ahead of them.
ACA (Affordable Care Act) Reporting:
According to the IRS, if your organization has 50 or more full-time employees, you may be considered an Applicable Large Employer (ALE). This means you must offer “minimum essential coverage” through an employer-sponsored health plan and meet specific reporting requirements.
Key ACA Reporting Components & Deadlines:
- Employee Copies (Form 1095-C): Must be distributed by March 2, 2026
- IRS Filings (Forms 1094-C & 1095-C) electronic filing: Due by March 31, 2026, or Paper filing: Due by February 28, 2026
Tracking Full-Time Status: Employers must use either a monthly measurement or a look-back period to determine full-time eligibility (30+ hours/week). After the measurement period, an administrative period then follows to process enrollment and notify employees of any status changes.
Penalties for Noncompliance: According to SHRM, failure to comply with ACA reporting can result in an excise tax of $100 per affected individual per day the plan is out of compliance. Therefore, it is extremely important to stay on top of your employee counts as well as those that may be eligible.
FMLA Compliance Reminders
Tracking FMLA leave entitlement as well as understanding when a new leave year becomes available is an important administrative task. Leave eligibility is based on how the 12-month period is defined. Employers can choose from the following methods:
- Calendar year
- Fixed 12-month leave year
- 12-month period measured forward
- Rolling 12-month period
Why it matters:
If your policy uses the calendar year method, an employee who used 12 weeks of leave in Q4 may be eligible for another 12 weeks immediately starting January 1st, potentially resulting in 24 consecutive weeks of leave. According to USDOL, If your FMLA policy does not specify the measurement period, the employer must use the 12-month period that is the most beneficial to the employee. Staying on top of these critical dates is important to notify employees of their new eligibility period.
Employers must also provide the following important FMLA notice requirements:
- General Notice
- Eligibility Notice
- Rights and Responsibilities Notice
- Designation Notice
Failure to specify the measurement method in required notices may constitute “interference,” exposing employers to liability for lost wages, benefits, and even reinstatement or promotion. An interference claim is defined when employer has hindered their FMLA rights.
Additional Communication:
As the Open Enrollment season is approaching for many employers, it is also critical to keep employees on leave informed about benefit-related notices such as:
- Summary of Benefits and Coverage (SBC)
- HIPAA notices
- Open Enrollment deadlines
Neglecting to communicate these while an employee is on leave may also be considered FMLA interference.
Wage and Hour Law Compliance
Wage laws are constantly evolving. In the past year alone according to SHRM:
- 21 states raised their minimum wage
- 48 cities and counties implemented local increases
For example, New York often adjusts its minimum wage annually on January 1, while other jurisdictions may implement mid-year increases due to cost-of-living adjustments or legislative changes.
Best Practices for Employers:
- Clearly communicate wage changes to employees in advance
- Post required notices
- Issue “Wage Theft Prevention” notices where applicable
States like California, New York, and Washington, D.C. have specific Wage Theft Prevention laws. According to the NYS DOL notices must be given at the time of hire or if there is a reduction in pay. Employers in hospitality however, must give notice every time a wage rate increases. Therefore, it is important to provide these notices when minimum wage does increase on January 1st annually in New York.
Final Thoughts
ACA, FMLA, and Wage and Hour laws are just a few areas with critical compliance requirements. Staying informed and proactive is key. At Pinnacle Employee Services, Inc., we’re here to help you navigate and administer these complexities—because your employees are our priority.
