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  1. #1
    Join Date
    Jun 2018
    Posts
    3

    Default When Does COBRA Apply to an Employer

    My question involves labor and employment law for the state of: any

    Federal COBRA requires employers to offer continuing health insurance coverage to terminated employees if they have 20 or more employees. (Let's disregard states' mini-COBRA for now.) Is this "20 or more employees" referring to the size of the company at the present time (at the time when a terminated employee might receive coverage), or at the time of the employee's termination? Suppose a company had more than 20 employees, but then it terminated most of them at one time, so that after termination it has fewer than 20 employees; would this company be required to offer Federal COBRA?

  2. #2
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Does COBRA's 20 Employee Condition Refer to Currently or Size at Termination Time

    COBRA applies to employers with 20 or more employees. For purposes of COBRA, the rule is that the employer must have at least 20 employees on more than 50% of its typical business days in the previous calendar year to be covered by the law.

  3. #3
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Does COBRA's 20 Employee Condition Refer to Currently or Size at Termination Time

    The Affordable Care Act, aka Obamacare, implemented a regulation requiring employers to offer health insurance to full time employees, and provided a definition of full time. The eligibility rules for COBRA did not change for either employers or employees. hr for me's information is correct.

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