What’s the most litigated issue with respect to COBRA? COBRA notices! And, recently there’s been a significant increase in the number of class action lawsuits alleging that employers haven’t adhered to the federal law’s notice requirements. One such case was just settled for nearly $1 million.
In other words, not complying with COBRA’s notice requirements can have substantial financial consequences.
If the plan administrator doesn’t provide the required notice to a qualified beneficiary, that plan administrator could be liable for penalties of up to $110 per day per affected beneficiary. In addition, there is a COBRA excise tax that could apply and amounts to $100 per day for each affected qualified beneficiary. So, if there are systemic deficiencies in how the plan administrator manages COBRA notices, the exposure to costly liability could easily reach hundreds of thousands of dollars - or even into the millions, depending on the number of qualified beneficiaries impacted.
Join us for a webinar which will reveal the results of BLR’s new COBRA Notice Survey designed to teach you the ins and outs of COBRA notice requirements so you can minimize your organization’s legal risks.
What You'll Learn:
- The key points the COBRA notice should cover
- The key timing rules that must be adhered to
- An example of a clear, accurate, and complete COBRA notice
- Why explaining a departing employee’s COBRA rights during an exit interview can actually be a bad idea
- How to establish ways to prove that a good-faith effort to send a COBRA notice has been made
- Why factoring in your rate of turnover and company size is important for ensuring that COBRA notices are sent in a timely manner
- COBRA recordkeeping best practices, including how to make the “Mailbox Rule” work for you to reduce potential legal liability
- The facts of recently filed lawsuits alleging deficient COBRA notice was provided and what you can learn from them!
Presenter: Paul M. Hamburger, Esq., Partner & Co-Chair of the Employee Benefits & Executive Compensation Group, Proskauer Rose LLP
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