COBRA allows eligible individuals to continue employer-provided group health coverage for a specified time period due to certain qualifying events, such as job loss. In February 2009, the American Recovery and Reinvestment Act of 2009 (ARRA) was enacted and provided a temporary 65% COBRA (or similar state continuation coverage) premium subsidy for eligible individuals. In December 2009, President Obama signed the Department of Defense Appropriations Act (DDAA) which also amended the ARRA. For individuals who were involuntarily terminated from employment (and for eligible family members), the DDAA:
Under the ARRA, the current COBRA program provides a nine-month subsidy for COBRA-eligible individuals who experienced involuntarily employment termination and, as a result, who lost coverage on or after September 1, 2008 through December 31, 2009.
However, under the DDAA, the COBRA subsidy has been extended to 15 months for COBRA-eligible individuals who experienced involuntarily employment termination on or after September 1, 2008 through February 28, 2010.
Employers must allow an individual who lost the subsidized COBRA coverage when the subsidy expired to reactivate coverage by retroactively paying the COBRA premiums. These individuals are considered eligible for the extension if they pay the reduced premium amount for the entire period since the lapse of their COBRA coverage by February 17, 2010 or, if later, 30 days after they receive proper notice of their new rights under the law.
For individuals who paid for the full premiums following the lapse, employers generally must either make a reimbursement payment equal to the excess portion paid or credit that amount toward future premiums payable.
New Notice RequirementsCertain current and former participants and beneficiaries must be notified about the current premium reduction provisions. For more information about the new notice requirements, please review the information in the Tool of the Month in this newsletter.
Action ItemsIdentify individuals affected by the subsidy extension.
Send required notices to affected individuals (which may be already managed by your COBRA administrator).
Provide credits or refunds to individuals, who paid the full COBRA amount for December and/or January and who are now eligible for a subsidy for those months, and restore coverage for individuals who did not make those payments but now pay them retroactively.
Track future eligibility and end dates for COBRA-eligible individuals and participants.
Note: COBRA may be extended yet again (to June 30, 2010) due to the proposed Jobs for Main Street Act on which Congress is currently debating.
Question & AnswerThe Employer's Obligation with an Order of Protection
Q. An employee stated that she has filed an Order of Protection against a current client and that our company can no longer serve the client in question due to the order. What is our legal obligation to the employee?
A. First of all, have your employee provide you with a copy of the Order of Protection (These are sometimes referred to as restraining orders) as it would typically contain very specific language.
A judge issuing an Order of Protection may order the "respondent" / client to:
Refrain from harassing, abusing, stalking, intimidating or interfering with the personal liberty of the "petitioner" / employee,
Not go in or near the employee's work, home, school, or other site frequented by the employee, and/or cease from contact of any form with the employee, etc.
Most orders include a prohibition against entering the victim's place of employment. If the employee agrees, the employer can make the appropriate staff (i.e. those who interact with on-site visitors) aware of the situation by providing a description of the individual as well as a copy of the order. The employer could then instruct them to contact the police if they suspect that the individual is on-site or in violation of the order.
Additionally, you can make sure that there is ample lighting surrounding the facilities (i.e. the parking lot), and allow the employee to park closer to the workplace. You may choose to be flexible if the employee needs time off to attend hearings or counseling.
While it is your employee's responsibility to sit down with you (the employer) and discuss the order of protection and offer reasonable suggested solutions or modifications, there is no need to ban the client from your company except when the employee is on or near the work premises.
New E-Verify Rule Impacting Federal ContractorsIt is vital for employers to understand there are new regulations impacting the E-Verify system for federal contractors. Federal contractors are obligated to utilize the E-Verify system to figure out if employees are eligible to legally work in the United States.
On or before September 8, 2009 it was not mandatory for employers to use the U.S. Citizenship and Immigration Services' E-Verify system. Employers were able to use it for new hires on a voluntary basis, if they had for at least 120 days contracts valued more than $100,000. Effective after September 8, 2009, however, new and current employees who work on a contract must be reported through the new E-Verify system.
Considerations for Employers:Get More Familiar. Learn about the new E-Verify system whether or not you currently have federal contracts to ensure more proficiency and efficiency.
Know the Contracts.
Make sure your point person with the HR role and responsibilities is aware of any federal contracts to help stay in compliance.
Plan It Out
The entire staff may need to go through the E-verify system which can pose various administrative (i.e. time and costs) and employee morale issues.
Conduct Regular Checks
Regularly track to ensure you have up-to-date employee I-9 information and that they meet current compliance standards.
It is unlawful if employers choose to ignore the new rules and regulations and not apply them consistently and fairly in their line of business. So, know if you have federal contracts, and be consistent with Form I-9 and other employment verification documentation practices to avoid misrepresentation and discrimination.