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The Consolidated Omnibus Budget Reconciliation Act, which stands for COBRA, has been around for a long time. Still, it remains the source of thorny compliance problems and a fertile ground for litigation. The sheer complexity of the COBRA scheme, and the timing issues involved, can throw off even the most diligent and conscientious employer. COBRA […]
We’ve all heard about the “Great Resignation” triggered by the post-COVID environment. Workers are deciding to voluntarily exit the workplace in search of other options. Separately, we have seen the news about a possible economic recession in the near future that could prompt employers to consider “reductions in force” (RIFs). Given the economic turbulence and […]
In this post-COVID-19 era of the Great Resignation and “quiet quitting,” one of the newest ideas for attracting and retaining employees is one that was usually limited to professors in higher education: the sabbatical.
The American Rescue Plan Act of 2021 (ARPA) became law in March. The $1.9 trillion stimulus package contains a mix of benefits, tax credits, programs, and subsidies in response to the continuing COVID-19 pandemic. Among the ARPA’s provisions are several related to COBRA. Let’s take a closer look.
On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) became law in the United States. Provisions of this law state that employers are now required to pay a 100% subsidy of the Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage premiums for certain people during the period of April 1, 2021, through […]
When it comes to compliance, sometimes it helps to share specific cases and how employment lawyers approached them. Today, we share three benefits-related questions submitted to our employment lawyers, along with their answers. Learn whether to give a 1095-C form to an employee who declined coverage, whether offering higher plan contributions for more tenured employees […]
Many cases have recently challenged the technical content in various employer-provided COBRA notices. The premise of these lawsuits has been that even minor deviations from COBRA regulations from the U.S. Department of Labor (DOL) should make a plan administrator liable for penalties even if the notices otherwise included comprehensive COBRA information. Certainly, plan administrators should […]
The current economic turbulence and uncertainty, caused in large part by the business reaction to COVID-19, has forced employers to rethink how they manage benefits for workers who suffer job loss (including—aside from termination of employment—layoffs, temporary furloughs, and leaves of absence). One of the key benefits (other than cash) provided to employees who suffer […]
The gross misconduct exception under COBRA means that if an employee’s employment is terminated due to gross misconduct, continuation coverage does not have to be offered to the terminated employee or the terminated employee’s family. One of the many tricky aspects of administering the gross misconduct rule is that the decision should be made at […]
The American Rescue Plan Act of 2021 (ARPA) has some new rules related to the Consolidated Omnibus Budget Reconciliation Act (COBRA). Any employer that has a health plan subject to COBRA should be aware of these changes. Let’s take a look at the basics of what ARPA will implement.