State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?


Download Now!




This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

Download Now!
March 02, 2010
COBRA Subsidies: Workers Laid Off After February 28 Won't Qualify

The U.S. Senate has yet to approve legislation that would extend a program that provides subsidies for COBRA continuation coverage for involuntarily terminated workers.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

The American Recovery and Reinvestment Act of 2009 (ARRA), as amended by the Department of Defense Appropriations Act of 2010, allowed workers who were involuntarily terminated between September 1, 2008 and February 28, 2010 to be eligible for 65 percent COBRA subsidies.

Unless Congress extends the program further, workers who are involuntarily terminated after February 28 won't qualify for the subsidy. The House had approved a 1-month extension but the Senate recessed without approving the extension. Another proposal would extend the program until the end of 2010.

When ARRA became law in 2009, the COBRA subsidy program applied to workers who were involuntarily terminated from September 1, 2008 to December 31, 2009. However, the Department of Defense Appropriations Act of 2010 amended the program to allow workers who are involuntarily terminated between September 1, 2008 and February 28, 2010 to be eligible for the subsidies.

Workers who were involuntarily terminated on or before February 28 will continue to receive up to 15 months of subsidies.

Featured Special Report:
Top 100 FLSA Overtime Q&As
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB02
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Benefits-Leave/Healthcare-Insurance/COBRA-Subsidies-Workers-Laid-Off-After-February-28/