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  1. #1
    Join Date
    Mar 2009
    Posts
    4

    Default Is Employer Responsible to Continue Insurance Coverage After Layoff

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

    I was recently laid off with a company I had been with for 13 yrs--the last working day before my anniversary date. Last yr they forced us to take mandatory vacation days thus making us short when anniversary rolls around. Company policy states that vacation is accrued and payable after anniversary date (this isn't the original policy--it was changed after paying out those vacation hrs after terminating someone).

    Question one: Do they have to pay me the vacation hrs I accrued up until lay-off?

    Question two: Do they have to continue my insurance coverage for 30 days if I don't take cobra?

    I was under the impression that they had to cover me for the 30 days after seperation and therefore incurred medical expenses they say I'm responsible for.

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Is Employer Responsible to Continue Insurance Coverage After Layoff

    1.) This question is not altogether clear in IN although I believe there is case law in IN suggesting that vacation is payable at termination unless there is a policy to the contrary. This would mean, however, only what had actually accrued on the last day of employment and not what would have accrued over the upcoming year.

    2.) No. They are under no legal obligation to continue your insurance beyond the day you are laid off unless there is a provision to that effect in the insurance plan document. In my experience about half the time coverage ends on the last day of employment and in the other half is ends on the last day of the month in which employment ends (i.e. if today was your last day, the last day of coverage would be 3-31). But the days when the law required employers to continue coverage beyond employment ended long ago with the advent of COBRA.

  3. #3
    Join Date
    Mar 2009
    Posts
    4

    Default Re: Is Employer Responsible to Continue Insurance Coverage After Layoff

    My anniversary date was 2/7/09--I was laid off 2/5/09. Vacation is accrued at the beginning of the month making me believe they owe me all except the two days they put me in the whole for mandatory vacation days for economic slowdown.

    That was my impression--that I would have insurance coverage for 30 days past my last day worked being 3/5/09.

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Is Employer Responsible to Continue Insurance Coverage After Layoff

    I can't help what your impression was. The law does not require that they continue to cover you for 30 days. They only have to cover you to whatever it says in the plan document. If the plan documents says 30 days after last day of employment, fine. But if the plan document says something other than that, the plan document rules.

    Under no circumstances, barring a legally binding contract or CBA that expressly says otherwise, do they owe you for any time you have not yet earned. Depending on how the policy is written, they may or may not owe you for time earned but not yet taken. The law NEVER requires that you be paid for time that has not been earned yet.

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