Federal or State continuation?

[Guest lschaab]

If a company in NY has 20+ employees, and a company in PA (a wholly owned subsidiary of the NY company) has 5 employees, does the Federal continuation rules apply to the PA employees, or state continuation rules?

[SLuskin]

This looks like part of a controlled group to me, so I would lean toward Federal.

However, are both groups on the same health plan? covered by the same carrier? have the same plan year, options, etc?