July 16, 2024

No, posting required notices for employees without work computers on the company intranet for access via a kiosk, time clock or shared computer is not sufficient to meet the DOL’s electronic disclosure rules.

The DOL rules provide a safe harbor for electronic delivery of required notices. Under this safe harbor, electronic delivery of notices (and other ERISA-required disclosures) is permitted, but employees must either have computer access as an integral part of their job or must consent to receive plan disclosures electronically. Even if an employee has a work-provided email address, if they cannot access electronic documents in their normal work location, they are not considered to have computer access as an integral part of their job. 

However, an employee can consent to receive plan notices electronically to meet the DOL’s electronic disclosure safe harbor. The consent should explain what documents will be distributed electronically, the right to request paper copies of the documents, and the procedures for withdrawing consent.

If an employee has integral access to a computer at work or proper consent is received, electronic delivery may include things like posting notices to an intranet site, benefits administration portal or HRIS system, or sending the notices via email (either work-provided or the personal email the employee consented to use). Importantly, employers must notify employees that the notice has been posted or distributed via email and explain the significance of the notice. Employers should also use “appropriate and necessary” means to ensure employees’ receipt of the notice, such as using return receipts or periodic surveys to confirm receipt.

If an employee does not have integral access to a computer at work and does not consent to receive plan notices electronically, the employer must provide paper notices either by hand delivery or mail. If the employer chooses hand delivery, it is advisable to get the employee’s signature confirming receipt; otherwise, the employer does not have proof of distribution. If delivered by mail, the employer should document the procedure and date that the documents were mailed. 

Employers should review their electronic delivery policies and procedures and make any necessary changes to comply with the DOL safe harbor. Employers should also ensure that they adequately document and retain copies of required disclosures, regardless of whether the distribution is electronic or by paper. 

For further information on distribution of required group health plan notices, please download a copy of the PPI publication Electronic Distribution Rules: A Guide for Employers.