Sep 06, 2024
Compliance News Week Ending September 6, 2024
In this Article:
- IRS Releases DRAFT ACA 1094 and 1095B Instructions
- Employer Action Items - HIPAA Privacy Rule Modifications
- Texas Court Sets Aside Ban on Non-Compete Agreements
IRS Releases DRAFT 2024 ACA 1094 and 1095B Instructions
Earlier this week, the IRS released DRAFT ACA instructions for Forms 1094 and 1095B for employers and service providers to review. These instructions are DRAFT. The IRS should soon be releasing DRAFT forms as well.
The IRS also released a DRAFT version of the 2024 1095C form. The instructions have not yet been released.
More Information:
Employer Action Items – HIPAA Privacy Rule Modifications
The Department of Health and Human Services (HHS) issued new regulations under HIPAA imposing new restrictions on the use and disclosure of PHI (Protected Health Information) regarding ‘reproductive health’. This change affects covered entities including employer group health plans and will require updates to HIPAA policies and procedures and training practices.
Deadlines for compliance:
Deadline December 23, 2024
- Revise the health plan’s HIPAA privacy policies and procedures
- Train applicable workforce employees so they understand the new use and disclosure restrictions
- Update business associate agreements
Deadline February 16, 2026
- Update Notice of Privacy Practices to include the new protections. The new Notice will need to be distributed and posted for employees to review.
More Information:
Texas Court Sets Aside Ban on Non-Compete Agreements
Employers who use non-compete agreements to safeguard trade secrets and other key business interests received welcome news on August 20. The Federal Trade Commission’s (FTC) final non-compete rule, which aimed to ban most non-compete agreements and mandate employers to issue non-enforcement notices, has been set aside by a Texas court. This means the rule, initially scheduled to take effect on September 4, will not be enforced.
In the case of Ryan, LLC v. Federal Trade Commission, the U.S. District Court for the Northern District of Texas ruled in favor of the plaintiffs, determining that the FTC lacked the statutory authority to issue the non-compete rule. The court’s decision was based on the Administrative Procedure Act (APA) and the Declaratory Judgment Act, deeming the rule both “arbitrary and capricious.”
This ruling effectively halts the enforcement of the FTC’s non-compete rule on a national scale, impacting all employers, not just the plaintiffs involved in the case. The court's decision means that the rule will not take effect and cannot be enforced across the country.
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