California has enacted legislation (Assembly Bill 1554) that will require employers to notify employees who participate in a flexible spending account of any deadline to withdraw funds before the end of the plan year. Assembly Bill 1554 takes effect Jan. 1, 2020.
Employers must provide the notice in two different forms (email, phone, text message, mail, or in-person), one of which may be electronic.
Compliance Recommendations:
California employers with employees participating in a flexible spending account should ensure compliance with the new notice requirement by January 1, 2020.
Please contact your dedicated service professional with any questions.