Is an employer required to give its employees notice before terminating its flexible spending plan for health benefits?

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Is an employer required to give its employees notice before terminating its flexible spending plan for health benefits?

The company for which I work was taken over by another company 2 weeks ago. Today they notified all participants in the flexible spending plan that the plan was terminated as of today and no one could submit claims for expenses incurred after today. Is this legal?

Asked on March 12, 2012 under Employment Labor Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under federal law, ERISA, your employer is mandated to give his or her employees written notice well ahead of time of the termination of the flexible spending time for health benefits where the writing is to be signed and dated by all employees.

The purpose of this requirement is to allow the employee whose plan is being terminated to seek another plan to continue the health benefits in an uninterrupted manner. What you have written about is an impropriety by your employer.


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