California law requires employers to provide notice to employees with Flexible Spending Account
- Legal and Compliance
- Fully Insured and Self-Funded
- All States
California law, AB 1554, requires employers to provide employees with a Flexible Spending Account (FSA) notice of any deadlines to withdraw funds before the end of the plan year. Starting in 2020, employers will have to provide 2 separate notices, one of which may be electronic, to employees informing them of the deadlines for withdrawing money before the end of the plan year from their health, dependent care and adoption assistance FSAs.
These notices, which are the employer’s obligation, can be provided via electronic means (e.g., email or text), by telephone, by mail or in person.
This new California labor law goes into effect on Jan. 1, 2020, and does not specifically prescribe any deadlines by which these notices must be provided. Employers should review the applicability and requirements of this law with their own counsel.
At this time, UnitedHealthcare can provide FSA or membership reports to identify FSA members and FSA balances, if requested. We are evaluating other tools to assist customers, and will notify you of new options as they become available.
Contact your UnitedHealthcare representative for additional information on support and costs.