Governor Brown has signed a bill that repeals a California law that required employers in the state to offer health coverage to employees after just 60 days of hiring.
Thanks to the passage of this measure, Golden State law will be aligned with federal law, which requires that employers offer health coverage to new employees within 90 days of hiring them.
The bill, SB 1034, was pushed through the Legislature to also ease administration and compliance for multi-state employers by ensuring they have just one date to keep in mind when determining when a new hire must be enrolled in a health plan.
Also, SB 1034 changes existing law that requires employers offering a plan to send a written notice to an eligible employee who fails to enroll during an open enrollment period that they may be excluded from coverage for a specified period of time.
The new law instead requires the notice to inform the eligible employee that they may be excluded from eligibility for coverage until the next open enrollment.