COBRA Subsidy Extension
Earlier this week, President Obama signed into law H.R. 4691 which provided an extension of various unemployment benefits including a 31-day extension of the COBRA subsidy eligibility to those individuals who are involuntarily terminated between March 1, 2010 and March 31, 2010. The 65% subsidy is available for a 15-month period and does not extend the 18-month limit for COBRA benefits.

The Senate will soon consider H.R. 4213, which proposes an extension of the COBRA subsidy through December 31, 2010.   

New COBRA Changes Link - Department of Labor Website

On December 21, 2009 the Senate approved extension of the COBRA subsidy.  Here is a summary of the extension guidelines:

1) The subsidy program now will cover people eligible for COBRA due to involuntary employment termination on or before Feb. 28, 2010, instead of Dec. 31, 2009.

 

2) The maximum subsidy period for those eligible - including anyone now receiving the subsidy - will be 15 months instead of just nine months.

 

4) Individuals who exhausted the original nine-month subsidy period before the new law takes effect can get the subsidy for another six months (if they remain eligible and their COBRA period hasn't ended).

 

5) Employers must notify those previously eligible for the subsidy who exhausted the subsidy and then dropped COBRA (or kept COBRA but paid unsubsidized premiums) that they now may pay reduced premiums for retroactive coverage (or receive credit for or reimbursement of overpayments). That notice must be given within 60 days of the individual dropping or first overpaying for COBRA.

 

6) Employers must send notices describing the revised program to anyone eligible for the subsidy or terminated from employment (voluntarily or not) on or after Oct. 31, 2009. This notice must be given within 60 days of the law's enactment (presumably by mid-February).

 

7) Oregon Continuation of Benefits coverage (for employers of fewer than 20 workers) has also been extended from nine to fifteen months.

The American Recovery and Reinvestment Act of 2009 (ARRA), the financial stimulus law signed by President Barack Obama on Feb. 17, 2009, includes significant changes to the COBRA continuation coverage rules. In general, the ARRA:

• Provides a 65 percent federal government subsidy of COBRA continuation coverage premiums for a maximum of nine months for certain individuals who are COBRA qualified beneficiaries because of a covered employee’s involuntary termination of employment.
• Requires employers to pay the 65 percent portion upfront, and then allows them to deduct those costs from their Social Security and Medicare taxes.

Plan administrators of group health care plans subject to COBRA need to act quickly to:

• Implement administrative procedures necessary to provide the subsidy.
• Provide notices required by the ARRA to COBRA qualified beneficiaries who are eligible for the subsidy.
• Implement the extended COBRA coverage periods.

The DOL clarified the application of the Recovery Act to employers with fewer than 20 employees covered under state mini-COBRAs. These employers must comply with the Recovery Act's subsidy requirements and may claim reimbursement for the 65% share of the premiums.  This includes Oregon employers of fewer than 20 employees covered by Oregon Continuation of Benefits.

New Employment Posters

2010 Oregon Minimum Wage
Effective January 1, 2009, Oregon Minimum Wage was increased to $8.40 per hour. Be sure to place this posting in an area accessible to all employees.  This rate continues to be in effect through 2010.

2010 Washington Minimum Wage
Effective January 1, 2009, Washington Minimum Wage was increased to $8.55 per hour. Be sure to place this posting in an area accessible to all employees.  This rate continues to be in effect through 2010.

New EEOC "The Law" Poster

Effective November 21, 2009, the new Genetic Information Nondiscrimination Act (“GINA”) takes effect.  This new federal law makes it unlawful for employers of 15 or more employees to request, require, or purchase genetic information with respect to an employee or family member of the employee. The EEOC has issued a new “The Law” poster to incorporate GINA requirements.   

New I-9 Form
The Department of Homeland Security has issued a new I-9 form that must be used by all employers as of April 3, 2009.  Click the link above to download the revised I-9 form.

New COBRA Model Notices
New COBRA Model Notices have been created by the Department of Labor.  Use this link to download the new Model Notices and stay in compliance with ARRA regulations.

2009 FMLA Poster

Effective January 16, 2009 The Department of Labor revised certain conditions of the Family Medical Leave Act (FMLA) and issued a new FMLA Poster.  The Final Regulations (PDF) implement two important new military family leave entitlements for eligible specified family members: 

(1) Up to 12 weeks of leave for certain qualifying exigencies arising out of a covered military member's active duty status, or notification of an impending call or order to active duty status, in support of a contingency operation, and

(2) Up to 26 weeks of leave in a single 12-month period to care for a covered servicemember recovering from a serious injury or illness incurred in the line of duty on active duty. Eligible employees are entitled to a combined total of up to 26 weeks of all types of FMLA leave during the single 12-month period.

Federal Minimum Wage

Effective July 24, 2008 the Federal Minimum Wage will increased to $6.55 per hour.  Print out a copy of the required posting and place in an area accessible to all employees.