Update: DOL Issues New COBRA Notices

The Department of Labor recently issued updated COBRA model notices to assist employers in complying with the recently enacted Temporary Extension Act of 2010 ("TEA").  The DOL website has the following model notices available:

The website contains helpful information on each model notice so employers can determine which notices to send and each notice must be sent.  Employers should take care to ensure they are sending out the appropriate updated notices as required by the TEA

President Obama Signs Jobs Bill, Hopes to Help Millions of Unemployed Workers

President Obama signed the HIRE Act, a $17.5 billion jobs bill, into law earlier today.  The bill includes tax breaks for small businesses and highway program funding intended to promote job growth.

Small businesses that hire out-of-work employees will be exempt from paying the 6.2 percent Social Security payroll tax through December.  To qualify, the employee must have been unemployed for at least 60 days.  Businesses would also get a $1,000 tax break if they keep the worker for at least one year. 

According to the President,

"Many [small businesses] are on the fence right now about whether to bring on that extra worker or two, or whether to hire anyone at all.  This jobs bill should help make that decision much easier."

In addition to the tax breaks for small businesses, the HIRE Act also extends the Highway Trust Fund so states can continue funding transportation construction jobs.

The HIRE Act is the first in a series of jobs packages designed to accelerate the rebuilding of the economy and help millions of unemployed workers get back to work.  

18th Annual HR Law & Solutions Seminar: Registration Now Open

Register now for the 18th Annual HR Law & Solutions Seminar.  This seminar, sponsored by Henderson Franklin's Employment Law Practice Group, will be held on April 27, 2010 at the Pelican Preserve Country Club Clubhouse in Fort Myers, Florida.  Registration and continental breakfast begin at 7:45 a.m.  Topics include:

  • Employment Law and Legislation Update, presented by John F. Potanovic, Esq. and Robert C. Shearman, Esq.
  • Social Not-Working, presented by Suzanne M. Boy, Esq. and John D. Agnew, Esq.
  • Top 10 Ways to Protect Your Bottom Line When Dealing with Workers' Compensation Claims, presented by Cora C. Molloy, Esq. and David H. Roos, Esq.
  • Cleaning Up the Stress Mess, presented by Sean Carter, Esq.
  • Breakout Sessions

The seminar has been approved for by HRCI 4 recertification credits. "The use of this seal is not an endorsement by the HR Certification Institute of the quality of the program. It means that this program has met the HR Certification Institute’s criteria to be pre-approved for recertification credit."

 

Contact Gail Lamarche, Henderson Franklin's Marketing Director, with any questions.  Gail can be reached at 239.344.1186 or gail.lamarche@henlaw.com

 

President Obama Signs Bill Extending COBRA Subsidy

On March 2, 2010, President Obama signed the Temporary Extension Act of 2010 into law.  This bill, which applies retroactively, extended the COBRA subsidy for individuals who lose group health coverage due to an involuntary termination that occurs up to and including March 31, 2010.  The previous cut-off date was February 28, 2010. 

In addition to the subsidy extension, the bill also includes a provision that allows certain employees who initially lost group health coverage due to a reduction in hours and were later terminated to receive the subsidy.  The New York Labor & Employment Law Report recently covered this change in detail in:  COBRA Subsidy Available for Reduction in Hours Followed by Involuntary Termination.

Congress is currently considering additional legislation that would extend the COBRA premium subsidy even longer.  The House is considering the Jobs for Main Street Act, which would extend the subsidy through June 30, 2010.  The Senate is considering the American Workers, State, and Business Relief Act of 2010, which would extend the subsidy through December 31, 2010. 

Employers should monitor these bills closely to ensure compliance with all COBRA notice, premium subsidy, and related requirements.