The Consolidated Omnibus Budget Reconciliation Act (COBRA) was recently expanded under the American Recovery and Reinvestment Act. The new temporary requirements provide certain involuntarily terminated employees and their family extended health care coverage if they were terminated between Sept. 1, 2008 and Dec. 31, 2009. The new regulations can affect your day-to-day operations in regards to terminated employees. Here are just a few ways COBRA impacts you as an employer.

• The government will pay a 65% subsidy towards eligible employees’ COBRA coverage for up to nine months - employers are required to front this cost.
• The treasury department will provide employers with a credit against payroll taxes for the cost of the subsidy.
• Qualified individuals who initially declined COBRA coverage have an additional 60 days to elect.
• Employers must notify eligible employees of their rights by April 18, 2009.
• Employers need to check with their state insurance department to determine if state law applies in addition to federal requirements.
• Non-compliant employers can be held liable for court costs, legal fees, and medical claims incurred by a qualified beneficiary.
• Processes and procedures must be updated to accurately track, notify, and bill eligible employees.
• The IRS released guidelines to assist employers with administering these benefits. They also revised form 941 for employers to claim their credit.

FMLA
The Family Medical Leave Act (FMLA) allows employees who have worked over 1,250 hours in the last 12 months to take unpaid leave for up to 12 weeks during a 12-month period. In addition to other updates, the new regulations clarify standards for a break in employment due to military service that might effect an employee’s 12-month employment period. Eligible reasons for an employee’s absence include the birth or adoption of a child, caring for an immediate family member, the employee’s personal health condition, or caring for a military service member injured during active duty or other qualifying demands.

The updated FMLA regulations also create an increased record-keeping burden on employers, who now share the responsibility of notice requirements with employees. Employers must comply with the new regulations effective Jan. 16, 2009. Company policies and procedures must be updated to reflect the new and revised requirements. Here are some highlights from the new regulations and how they can affect your business:

• Employers are limited in the amount of information they can require from employees.
• Employers must retain leave documents for a longer time period.
• Employees must follow the employer’s normal call-in procedures.
• Intermittent leave must be granted as medically necessary.
• Employers can determine minimums for intermittent leave.
• Employers are required to notify an employee in writing if medical information is incomplete or insufficient in order for the employer to make a determination.
• Employers must notify an employee of requirements and consequences when a leave of absence is requested by an employee.
• Employees can request recertification (such as a serious health condition or family caregiver status) every six months for extended leaves.
• New regulations create differences between federal and state laws.
• Failure to comply can result in legal liability and fines.
• Military caregiver leave is a floating 12 month period.
• Light duty work does not count against FMLA.

This is not a comprehensive guide to new COBRA or FMLA requirements, rather a short overview to highlight some of the major changes. For expert information on how to deal with updated COBRA and FMLA regulations, subscribe to our HR Hotline to access the advice of our team of certified HR experts. Contact your local Express office for more information.

Article courtesy Express Employment Professionals.