Some California businesses offer health care benefits to employees. This can be a valuable asset for workers while they are with the business but when they leave, employees may be unsure what will happen to their health care benefits. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) makes provisions for employees in this situation. The CA employee benefits entitlements should be communicated to your staff so they can be aware of what would happen if their employment was terminated by either party.

Businesses with 20 employees in the preceding year must generally comply with COBRA. COBRA was introduced to offer protection to the employee after he or she parts from the company. Businesses which provide health plans must give covered employees the option to continue the group coverage. They should advise them and any family members included within the plan of their right to be covered. The employee can then elect to continue coverage for a limited time and pay the appropriate costs.

There are certain restrictions when an employee is terminated because of a breach of conduct. In this case the rules are complex and employers should seek professional advice regarding these types of situations.

Are you planning on introducing CA employee benefits but aren’t sure where to start? Call us for a discussion about the available options.
 

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