Common use of ACA Compliance Clause in Contracts

ACA Compliance. (a) To the extent any employee of Seller will perform Services at the Buyer’s Facility that is (i) on average, 30 hours per week or more and (ii) for a period of six months or more (an “Onsite Employee”), Seller, by entering into a Purchase Order, thereby represents and warrants to Buyer that it will satisfy all legal obligations imposed by the Affordable Care Act, including without limitation, the provisions of Internal Revenue Code Section 4980H (collectively, the “ACA”) with respect to Seller’s Onsite Employees at all times during any month during which Seller performs any Services at the Buyer’s Facility. Seller’s obligations include, but are not limited to, (A) determining which employees are Onsite Employees; (B) offering such employees minimum essential, affordable coverage with minimum value, as defined under the ACA (“Minimum Essential Coverage”); (C) offering Onsite Employees dependent coverage as required by the ACA; and (D) providing Onsite Employees notice of their right to enroll in or waive Minimum Essential Coverage; (b) In the event Seller receives notice of any Internal Revenue Code Section 4980H or Fair Labor Standards Act, Section 218C-related tax, assessment, penalty, claim, cause of action, judgment or assessment (an “ACA Action”) with regard to any of Seller’s employees performing Services at the Buyer’s Facility, Seller shall provide written notice to Buyer within ten (10) calendar days of its receipt of notice of any ACA Action; (c) Seller and Buyer agree that any fee paid to Seller for any Services includes, and is sufficient to cover the cost of, Minimum Essential Coverage for Seller’s Onsite Employees as required under the ACA and to avoid penalties or other liability for any ACA Action. Seller and ▇▇▇▇▇ further agree that the fee charged to Buyer for the Services would be less if Seller’s Onsite Employees did not enroll in Minimum Essential Coverage. Accordingly, ▇▇▇▇▇▇ agrees that within sixty (60) days of the end of each calendar year it shall refund to Buyer an amount equal to the fee Buyer Paid Seller for Minimum Essential Coverage with respect to each Onsite Employee that did not enroll in the Minimum Essential Coverage with respect to each month such employee qualified as an Onsite Employee (an “MEC Refund”). Seller shall keep full and detailed books, records and accounts as may be necessary to verify its compliance with its obligations under this Section for a period of six (6) years after the end of each calendar year in which Seller performs any Services. Buyer shall (by itself or through a representative) have the right to audit Seller records to confirm Seller’s calculation and payment of the MEC Refund and in the event of any ACA Action against Buyer; and (d) Buyer and Seller agree that the provisions of this Section are to ensure Seller’s compliance with the requirements of the ACA and that all employees of Seller shall be considered employees of Seller in all cases and not employees of Buyer and that nothing in this Section shall be deemed to alter that relationship.

ACA Compliance. (a) To the extent any employee of Seller will perform Services at the Buyer’s Facility that is (i) on average, 30 hours per week or more and (ii) for a period of six months or more (an “Onsite Employee”), Seller, by entering into a the Purchase Order, thereby represents and warrants to Buyer that it will satisfy all legal obligations imposed by the Affordable Care Act, including without limitation, the provisions of Internal Revenue Code Section 4980H (collectively, the “ACA”) with respect to Seller’s Onsite Employees at all times during any month during which Seller performs any Services at the Buyer’s Facility. Seller’s obligations include, but are not limited to, (A) determining which employees are Onsite Employees; (B) offering such employees minimum essential, affordable coverage with minimum value, as defined under the ACA (“Minimum Essential Coverage”); (C) offering Onsite Employees dependent coverage as required by the ACA; and (D) providing Onsite Employees notice of their right to enroll in or waive Minimum Essential Coverage; (b) In the event Seller receives notice of any Internal Revenue Code Section 4980H or Fair Labor Standards Act, Section 218C-related tax, assessment, penalty, claim, cause of action, judgment or assessment (an “ACA Action”) with regard to any of Seller’s employees performing Services at the Buyer’s Facility, Seller shall provide written notice to Buyer within ten (10) calendar days of its receipt of notice of any ACA Action; (c) Seller and Buyer agree that any fee paid to Seller for any Services includes, and is sufficient to cover the cost of, Minimum Essential Coverage for Seller’s Onsite Employees as required under the ACA and to avoid penalties or other liability for any ACA Action. Seller and ▇▇▇▇▇ further agree that the fee charged to Buyer for the Services would be less if Seller’s Onsite Employees did not enroll in Minimum Essential Coverage. Accordingly, ▇▇▇▇▇▇ agrees that within sixty (60) days of the end of each calendar year it shall refund to Buyer an amount equal to the fee Buyer Paid Seller for Minimum Essential Coverage with respect to each Onsite Employee that did not enroll in the Minimum Essential Coverage with respect to each month such employee qualified as an Onsite Employee (an “MEC Refund”). Seller shall keep full and detailed books, records and accounts as may be necessary to verify its compliance with its obligations under this Section for a period of six (6) years after the end of each calendar year in which Seller performs any Services. Buyer shall (by itself or through a representative) have the right to audit Seller records to confirm Seller’s calculation and payment of the MEC Refund and in the event of any ACA Action against Buyer; and (d) Buyer and Seller agree that the provisions of this Section are to ensure Seller’s compliance with the requirements of the ACA and that all employees of Seller shall be considered employees of Seller in all cases and not employees of Buyer and that nothing in this Section shall be deemed to alter that relationship.