Southwest Florida Employment Law Blog : Southwest Florida Employment and Labor Lawyers & Attorneys for Discrimination Lawsuits and Civil Rights Cases in Fort Myers, Bonita Springs & Sanibel FL

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:

• Model Updated General Notice
• Model Notice of New Election Period
• Model Supplemental Information Notice
• Model Notice of Extended Election Period
• Model Updated Alternative Notice

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. 

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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.

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Federal unemployment compensation and COBRA benefits expire tonight due to a gridlocked vote in the Senate.  As FOXNews reports:

Unemployment insurance and COBRA benefits will expire Sunday for millions of voters because the Senate was unable this week to pass a short-term extension, a failure that reflects partly the partisan gridlock that has stalled the Democratic legislative agenda and partly the Senate rules that allows one lawmaker to block legislation.

According to the FOXNews article, while benefits are set to expire today, the Senate should be able to renew them with a Tuesday vote.  Congress will soon take up a broader bill in its "jobs agenda," which includes an extension of the benefits for one year.  The bill is expected to pass by the end of next week.

As CNNMoney reports, the effect of the current benefits expiration is that unemployed workers will not be able to apply for the federal benefits during the expiration period, and those workers will stop receiving federal unemployment compensation checks once their state benefits or current federal benefits run out.  If the new extension is approved, jobless workers could reapply for federal benefits, but they will not receive missed payments.

Southwest Florida HR Law & Solutions will continue to monitor these developments, and will post updates as they occur. 

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On December 19, 2009, President Obama signed into law the Fiscal Year 2010 Defense Appropriations Act (the "Act"), which included an extension of the eligibility period and duration of the COBRA premium subsidy for assistance eligible individuals. Employers should be aware by now that the COBRA premium subsidy has been extended, as they are required to take several specific actions with regard to the extension.

Particularly, the notice to individuals describing the extension must be provided no later than February 17, 2010. This notice must be provided to those employees who were

1. assistance eligible individuals, or
2. experienced a qualifying event related to a voluntary or involuntary termination of employment at any time between October 31, 2009 and December 19, 2009. 

The Department of Labor has model notices available and employers who have not yet provided the required notice should make it a priority to ensure compliance with the Act.

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