Which employers are subject to COBRA?

An employer that employs 20 or more persons and maintains a group health plan must offer continuation coverage to qualified beneficiaries at their expense.  Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), an “employee” can include an independent contractor.  Continuation coverage must be offered to any covered employee and any qualified beneficiary, such as the employee’s spouse or dependent children.

There are severe punishments for failing to comply with COBRA.  If you have been accused of failure to comply, it is important to consult with experienced employment and labor attorneys as soon as possible. 

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