A law was finalized and signed by California Governor, Gavin Newsom, on August 30, 2019 that requires employers to notify employees who participate in a flexible spending account (FSA) of any deadline to withdraw funds before they expire at the end of the plan year.
Under this law (Assembly Bill 1554) employers will need to notify employees through two different communication channels, including:
- Electronic mail communication (including email)
- Telephone communication
- Text message notification
- Via postal mail
- In-person notification
This applies to all FSAs including health, dependent care, and adoption assistance.
How can eBacon help you comply with these requirements?
Compliance with employment laws can be difficult to keep up with, such as obligations to send certain required notifications to employees. Fortunately, eBacon’s platform takes care these types of notifications for you, as well as many other compliance obligations — including prevailing wage laws. Reach out to us today for a free consultation to see how you can stay compliant and save money.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.