Dependent Care Assistance Programs (DCAPs) are subject to nondiscrimination rules that are set forth in Internal Revenue Code Section 129. The statutory test has not changed since DCAPs were adopted by Congress as part of the Economic Recovery Tax Act of 1981. For the first time since DCAPs inception, the IRS has proposed regulations clarifying the application of those non-discrimination requirements. Employers that provide DCAPs (including allowing employees to contribute to dependent care flexible spending accounts through a cafeteria plan) will want to review the new proposed regulations.