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Penalties for non-compliance: Under ERISA, for failure to provide notice -- $100 per day per violation until notice is provided, to employees or beneficiaries. Under the Internal Revenue Code, excise tax of $100 per day per violation for each qualified beneficiary during the non-compliance period. A qualified beneficiary who did not receive coverage can bring a lawsuit against the employer. |
COBRA is the popular name of the Consolidated Omnibus Budget Reconciliation Act of 1985. The Act mandates that employers (with more than 20 employees on 50% of the business days of the previous year) continue health care coverage for employees enrolled in the benefit plan for a certain number of months (usually 18) after they suffer a loss of health care benefits. The loss of benefits is usually caused by termination of employment or a reduction in hours that makes employees ineligible for the benefit plan. All persons covered by a plan, including spouses and children, for example, are eligible for COBRA. Health care continuation coverage premiums are paid in full by the employee, and the employer may charge the employee 2% of the premium for administrative costs. The Act mandates the length of time employees have to elect COBRA benefits, response time for employers, and what notices must be provided.| < Prev | Next > |
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The loss in workplace productivity during the NCAA men's basketball tournament--commonly known as March Madness--can be offset by a gain in employee morale, says Diane Swanson, professor of management at Kansas State University.
