New FSA Notification Law for California Employers 2020
December 30th, 2019
California recently enacted AB1554, which purportedly requires an employer to notify employees of any deadline to withdraw funds from a flexible spending account (FSA) before the end of the plan year. The law applies to health care FSAs, dependent care FSAs and adoption assistance FSAs. Employees must be notified by two different forms, one of which may be electronic. Permitted types of notice include but are not limited to, in-person notification, email, telephone, text message, and postal mail. Many employers may have provided such notices about claim submission deadlines within their e-mail, telephone, text message, postal mail or in-person notification.
The new law is effective January 1, 2020.