On April 10, 2025, a federal court in Texas issued an opinion in the case of Faulk Co. v. Becerra that significantly impacts how the Affordable Care Act’s (ACA) employer mandate can be enforced. 

The ruling effectively prevents the Internal Revenue Service (IRS) from assessing penalties against employers that fail to provide affordable, minimum health insurance coverage to their employees as required by the ACA for companies with at least 50 full-time equivalent employees