In a Western District of Michigan court case, an employer successfully held off a challenge by a former employee of failure to provide a COBRA notice. In Perkins v. Rock-Tenn Services, Inc. (W.E. Mich. 2016), the Plaintiff, Robin Perkins, claimed that her employer failed to notify her of her right to continue health coverage notice upon termination. The claim was part of a larger employment discrimination lawsuit. A copy of the court’s decision can be accessed here.
In the case, Ms. Perkins alleged that Rock-Tenn Services failed to provide her a COBRA notice upon her termination of employment. The Human Resources Director testified that it was company practice to send notice of termination to their third-party COBRA vendor, and the practice was followed upon Ms. Perkins’ termination.
The vendor produced computer screenshots with dates showing when the COBRA notice was “initially created,” and “effective.” A third screenshot showed action “since” the notice was created. The vendor also produced records showing the dates the notices were mailed. The court found that the vendor’s processes were sufficient and a COBRA notice is furnished to an individual if it is mailed by first class mail, which happened in this situation.
Employers should take note of this lawsuit and make sure they have proper COBRA processes in place. For information about BAS’ COBRA notice and billing services through Cobra Control Services, LLC, contact info@cobracontrol.com.
