Are employers required to provide health benefits to their employees?
In California, employers are not required to provide health benefits to their employees. However, depending on the size of the organization, some employers may be required to comply with certain state and federal laws, such as the Affordable Care Act or the California Health Benefit Exchange Program. The Affordable Care Act (ACA) requires employers with 50 or more full-time employees to provide health insurance plans. Employers who do not comply with the ACA are subject to certain penalties. The California Health Benefit Exchange Program also requires some employers to provide health insurance plans, regardless of their size. For instance, employers with 5 or more employees must register with the Exchange Program and offer health coverage to their employees. Overall, employers in California are not legally obligated to provide health benefits to their employees unless they meet the requirements of either the ACA or the California Health Benefit Exchange Program. However, many employers do offer health benefits as an added incentive to attract and retain quality employees. Doing so can be beneficial for employers, as it helps attract quality talent and can even reduce employee turnover.
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