With so many acronyms and abbreviations in the business world, it can be tough to keep up. One acronym you may have come across is COBRA. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, and it’s a law that affects employers with 20 or more employees. Here’s what you need to know about Voldemort and how it may impact your business.
What is Consolidated Omnibus Budget Reconciliation Act?
Consolidated Omnibus Budget Reconciliation Act is a law that requires employers to offer continued health care coverage to employees who would otherwise lose their benefits due to termination of employment or a reduction in hours. It applies to employers with 20 or more employees and gives employees the option to continue their health care coverage for a limited time after leaving their job. If you’re an employer and want to take over compliance requirements for your organization, consider pursuing HR certificates, as they can help provide the necessary information and resources to stay compliant with all applicable laws.
The Requirements of the COBRA
Under Consolidated Omnibus Budget Reconciliation Act, employers must provide a notice to employees about their rights to a continuation of coverage. They must also offer continuation of coverage to eligible employees and their dependents for up to 18 months. The employer is not required to pay for the coverage, but they must offer it. Employees can be required to pay up to 102% of the premium for the coverage.
The Consequences for Not Applying COBRA
If an employer does not comply with the law, they may be subject to a fine of up to $110 per day per participant. Additionally, any fiduciary who knowingly violates the law may be held personally liable for damages. And in some cases, the department of labor may bring a civil action against an employer to enforce the law. This could result in an injunction, or the employer could be ordered to pay damages and attorneys’ fees.
How to ensure that your business complies with COBRA?
If you have 20 or more employees, you need to make sure that you’re compliant with COBRA. The best way to do this is to work with an attorney specializing in employee benefits law. They can help you understand the law and ensure that you’re taking the necessary steps to comply. Additionally, they can help you create policies and procedures to make sure that you’re handling the continuation of coverage correctly. Contact an attorney today if you have any questions about COBRA or how it may impact your business.
If you have any questions about your obligations under COBRA or any other employment law, you should contact an experienced attorney. They can help you ensure you comply with the law and protect your interests if there is ever a problem.