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10/08/2025

Open Enrollment Season in the Workplace: 5 Legal Considerations

Source: Fisher Phillips, September 26, 2025

It’s that time of year again – employers are gearing up for the administrative marathon known as open enrollment season, when employees revisit their benefit plan choices for the upcoming plan year. This critical period consistently highlights the many complex rules applicable to employer-sponsored health and welfare plans, and this year brings some new additions due to changes in federal law. We’ll cover five key compliance areas for employers and share practical takeaways to help you stay compliant.

Annual Open Enrollment in the Workplace

• What Is It? Open enrollment is the designated period when eligible employees can make choices for the upcoming plan year regarding employer-sponsored health and welfare benefits – such as health, dental, vision, life, or other voluntary insurance coverage for themselves and their eligible dependents. This is the only time of year when employees can make such elections, aside from initial enrollment (at the time of hire or when an employee first becomes eligible to participate) or special enrollment periods (such as when an employee experiences a specific event that entitles them to make mid-year changes to their benefit elections).
• When Is It? The open enrollment period typically launches a month or two before coverage begins and lasts for roughly two to four weeks. For example, employers that operate their group health plans on a calendar-year basis often hold open enrollment in October or November before coverage begins on January 1.
• Why Have It? Designating a specific timeframe for all employees to make their benefits selections not only reduces the administrative burden on HR teams but also can be necessary for compliance purposes, as we’ll explain below.

5 Legal Considerations + Employer Takeaways for Open Enrollment Season

• ACA Employer Mandate (applicable large employers)
• Cafeteria Plan Rules Under IRC Section 125
• IRS Limits for Account-Based Plans
• Open Enrollment Rights Under COBRA and the FMLA
• Required Disclosures Under ERISA and Other Laws

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