Q.- An employee punched his supervisor and we fired him. Do we have to offer him and his family the right to continue health coverage under COBRA?
A.- COBRA does not have to be offered to an employee who is terminated for gross misconduct. The COBRA rules do not define gross misconduct, and courts generally do not look favorably on employers who deny COBRA coverage based on gross misconduct. If an employer is wrong about gross misconduct and the employee should have been offered COBRA, a court could award retroactive COBRA coverage and the implementation of penalties of up to $110 per day for each day a COBRA notice is not provided.