According to Workforce Management, on December 19, Congress approved -- and the President signed -- a military spending bill that includes the extension of federal COBRA health insurance premium subsidies for unemployed workers.
The article states that the legislation will provide another six months of subsidized coverage for beneficiaries whose nine-month COBRA 65% premium subsidy has run out. It also gives beneficiaries whose subsidy expired and who didn’t pay the full premium the opportunity to receive retroactive coverage. The legislation also requires employers to notify current and future COBRA beneficiaries of the new 15-month premium subsidy.
COBRA is simple in concept but complex in implementation. More information can be found on the Department of Labor website, and of course, you can consult a professional.
Recently, the NY Labor and Employment Blog offered a description of changes to New York’s “mini-COBRA” law, along with other recently-passed employment legislation. The Governor’s Office notes that the legislation was passed so that New Yorkers can access the subsidy available under the Federal Stimulus Program.
We practice in New York, and health insurance coverage laws can be very confusing, so we offer a few comments that might be particularly helpful to both employers and employees.
First, a little background: Since the federal COBRA law covers only employers with 20 or more employees, some states have enacted similar laws to cover employers with 2-19 employees. By “cover” we mean, of course, that terminated employees (and some others) must be offered the opportunity to continue their health insurance coverage for a limited period, albeit without the employer subsidy (but now, for some, with a temporary federal “Stimulus” subsidy). Usually, the state laws mirror the federal law, although each state may have enacted one or two variations.
The New York amendment to its “mini-COBRA” law is one such variation. The amendment extends coverage from 18 months to 36 months following termination of employment. On the surface, this new extension to 36 months seems to cover all New York employers (and, thus, all terminated employees in New York). It does not.
As mentioned by The New York Labor and Employment Blog, New York’s law applies only to insured plans. Thus, New York’s law would not apply to the largest, self-insured employers. They continue to be covered only by the federal law, even in New York.
Although well-intended and undoubtedly of benefit to some individuals and their families, the New York provision may become a source of further confusion. Employers are required to provide notice to terminated employees in a detailed COBRA letter and with all the recent changes to COBRA, state and federal, it pays to review the letter carefully and to ask appropriate questions.
The NY Labor and Employment Blog offers a detailed description of these changes, along with other recently passed legislation.
The Ridgefield area has unfortunately not been immune to the recession, and our office has seen an increase in requests for consultations from employees working in either Connecticut or New York who have been laid off and believe their employers did not appropriately respect their rights.
Fortunately, several of these disputes are successfully resolved with just a letter. It’s great for the employee and, actually, great for the employer too. Who needs protracted disputes while trying to survive in a tough economy?
But, to those who are thinking of dispensing with legal advice and writing your own letters, “Don’t try this at home.” When there is a potential dispute, it’s imperative to get both the content and tone right, and that takes expertise. Threats of legal action rarely intimidate a party who has access to competent counsel. What’s even worse is making empty or ill-informed threats about non-existent rights that go nowhere.
Really good “lawyer letters” do not threaten. A good letter educates the reader as to the specific nature of the rights being asserted on behalf of the client. The tone, whether conciliatory or firm, must always convey a professional respect for the other side and a willingness to work to resolve the issues.
Sometimes, it can be done with a short letter. Sometimes circumstances require a detailed description of the facts. And, sometimes it works… really well.
Most employees in Connecticut and New York are not offered contracts and are hired as “employees at will.” That means their employment can be terminated at any time, for any reason, provided that antidiscrimination statutes are not violated. However, even if hired as an employee at will, a new hire may be offered agreements that are legally binding, such as, non-compete agreements, confidentiality agreements, agreements as to ownership of intellectual property rights.
And, some employees, primarily executive, managerial and professional employees, are offered comprehensive employment contracts. These contracts vary so much it is difficult to identify “what you should look for.” Typically, the contract will have a definite term, provisions for terminating the contract for cause or not for cause, compensation, duties and responsibilities (by incorporating a position description) and provisions governing confidentiality and intellectual property rights. You may be asked to give up the right to sue and to submit any disputes to arbitration. The contract could include many, many other provisions covering specific jobs in specific industries.
So, the short answer to your questions is: if you sign any type of agreement relating to your employment, you are always better off reviewing it first with an attorney of your choice.
