New USPS Postmark Rules Impact Employee Benefit Notices

Under federal laws like the Employee Retirement Income Security Act (ERISA), the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), the Health Insurance Portability and Accountability Act (HIPAA), and the Affordable Care Act (ACA), employers are required to send a variety of notices to their employees concerning health insurance coverage, retirement benefits, and other employee benefits.

The USPS recently changed its policy, indicating that machine-stamped postmarks may reflect the date of automatic processing, rather than the first date the post office obtained possession of the item. The new rule could lead to fines for employers if mandatory notices concerning employee benefit plans are deemed late. Electronically sending mandatory notices can help to meet a legal deadline, if the recipient has agreed to electronic communications.

Ogletree Deakins:
The New Postmark Rule Could Make Employee Benefit Notices Late