A federal district court in Texas recently approved a $1M settlement in a class action lawsuit for COBRA violations. In Slipchenko v. Brunel Energy, Inc., former employees sued their former employer for failing to provide initial COBRA notices and qualifying event notices.
The court approved the class action, and the parties negotiated a settlement of between $100 and $5,000 for each of the class members, with an additional $625,000 for attorneys’ fees and costs. This is the largest average per person recovery in a class action asserting COBRA claims.
The exact payment to a class member will be based on the number of days the individual did not have health coverage, the number of days before the individual received a COBRA notice, whether the class member inquired about coverage, and whether there was actual harm.
Courts do not look kindly on employers who do not follow COBRA rules. For assistance with COBRA administration, contact BAS’ Cobra Control Services, LLC at info@cobracontrol.com.