Co-authored by Brett Bartlett, Nicole Bogard, Alex Passantino, David Pilson, and Kevin Young Since it was signed into law in March 2010, the Patient Protection and Affordable Care Act, or “ACA,” has been a focus of national attention. While most have zeroed in on the employer mandate to provide health insurance, there are many other important changes, including to the FLSA. In this post, we focus on how ACA amended the FLSA and what those changes mean for employers. Auto-Enrollment. ACA added new Section 18A to the FLSA, which requires employers covered by the FLSA that have more than 200 full-time employees to automatically enroll new full-time employees in one of the employer’s offered health plans (if any). Employees must also receive an opportunity to “opt out.” In February 2012, the DOL indicated this requirement will not be enforced until regulations are issued. It remains uncertain when this mandate will become effective. Implications: If they have
The court invalidates arbitraton agreeements procured during a pending collective action motion because the unsupervised communication by the employer to the employee may be an attempt to supress class participation. "The Eleventh Circuit recognized the potential for coercion in such situations and held that the court had authority in Rule 23 class actions to invalidate opt-outs when they were procured through fraud, duress, or other improper conduct. Kleiner v. First Nat. Bank of Atl., 751 F.2d 1193, 1212 (11th Cir.1985). ...The court takes seriously its responsibility to see that an employer not engage in coercion or duress to decrease the size of a collective class and defeat the purpose of the collective action mechanism of the FLSA."
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