Q.- What happens if we forget to send a COBRA qualifying event letter to a terminated employee?
A.- There are strict timing rules for furnishing a COBRA qualifying event notice. You should send the notice as soon as the error is identified. Under federal COBRA rules, employers must notify their COBRA administrator within 30 days after the qualifying event occurs (such as termination or reduction in hours). The COBRA administrator is required to mail the letter within 14 days of the notification. If the notice is delayed or not sent, the employer could be subject to penalties from the Department of Labor up to $110 per day per affected individual. It is possible a court could also hold the employer responsible for the cost of claims incurred during the lapse.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
