labor lawAdivision of labor law center

As daily readers of this blog know, the ARRA or American Recovery and Reinvestment Act of 2009 provides for extended COBRA coverage at reduced cost for many unemployed workers.

COBRA, or the Consolidated Omnibus Budget Reconciliation Act of 1985, permits employees to extend their group health insurance coverage for up to 18 months when they lose coverage due to unemployment, a reduction in hours, divorce, or similar circumstances. COBRA also applies to dependents who lose group health insurance coverage for similar reasons, or due to the employee’s death. Employees who are fired for gross misconduct are not eligible for COBRA coverage.

The big news is that ARRA allows employees to pay just 35% of their usual COBRA premium. It also gives eligible employees a special period to sign up for COBRA coverage. This COBRA premium reduction covers any worker who has lost their job between September 1, 2008 and December 31, 2009.

Under the COBRA Premium Reduction, the employee can pay just 35% of the usual COBRA premium. The employer pays the remaining 65% of the premium, and then takes a tax credit on the quarterly federal payroll taxes. In this way, the federal government is picking up the tab on 65% of the employees group health insurance premium, and there is no gap in healthcare coverage.  

The COBRA Premium Reduction under the 2009 stimulus package applies for a maximum of 9 months.

Employees who did not opt to take advantage of COBRA coverage have a second chance (more…)

Employers throughout the U.S. are carefully watching what is happening these days in the District of Columbia.

D.C. has approved a controversial new act known as the Accrued Sick and Safe Leave Act of 2008, which essentially requires employers to provide paid sick leave to their workers. The act may be the harbinger of paid sick leave elsewhere, and has become an important topic among HR professionals.

Employees who would be eligible are those who, first of all, spend at least 50% of their work time in the District of Columbia. They must also have accumulated a year of continuous service and at least 1,000 hours of work in the previous 12 months, under the proposed act.

The new law is quite broad. Employers would be required to give paid sick leave to any of these eligible employees for any absences connected with (more…)