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Changes you need to know about-COBRA, SB519 and AEDs
COBRA Subsidy Extension Announced
On December 19, 2009, President Obama signed the Defense Appropriations Act of 2010 (the Act) into law. The Act extends the original federal COBRA subsidy of 65 percent of premium that was created by the American Recovery and Reinvestment Act of 2009 (ARRA) in several significant ways. Oregon has not yet reacted to this new development, but is expected to do so shortly.
Eligibility and Length of Subsidy Periods
The primary changes that arise from the Act are the extensions of:
- the total allowable time an individual could receive the COBRA subsidy by six months (from nine to 15 months); and
- the subsidy to individuals who are involuntarily terminated between January 1, 2010, and February 28, 2010.
In addition, the Act allows certain individuals whose subsidy periods already expired and who failed to pay their full unsubsidized premiums to retroactively pay them, as described below.
New Notice Requirements
Under the Act, group health plan administrators (employers, generally) must provide an additional notice concerning the subsidy extension. The notice is required for individuals who, on or after October 31, 2009, either: (1) are “assistance eligible individuals”; or (2) experience a qualifying event (consisting of termination of employment) relating to COBRA continuation coverage.
Among other things, administrators must amend COBRA subsidy paperwork to now reflect:
- the additional six months of coverage;
- the new February cut-off date to qualify for the subsidy; and
- the fact that individuals’ eligibility for the subsidy is conditioned only on the date of their involuntary employment termination (instead of the date of their employment termination and the date their COBRA coverage period begins).
Administrators will also need to include the above information in their standard COBRA package from this point on.
Finally, a separate notice is required for certain individuals who ceased to pay their COBRA premiums or paid it in full during the original nine-month subsidy period. These individuals will be able to retroactively reinstate their coverage by paying the subsidized premiums, or, in the case of those who paid the full premiums, receive a credit or refund of premiums paid.
Timing of Notice Changes
The Act provides time to send this notice — it generally must be sent within 60 days of enactment (by February 17, 2010), unless a qualifying event occurs after December 19, 2009. In that case, the notice, which must include information regarding the Act, must be sent pursuant to the general timing rules under existing COBRA regulations (generally 44 days from the date of the qualifying event).
There are still some details of the Act to be addressed through anticipated supplemental publications from the IRS. We will keep you updated as this information becomes available.
SB 519 Update
We previously alerted you to Oregon’s new law preventing companies from taking action against employees who refuse to attend employee meetings where politics, religion or unions are discussed – SB 519. We have just learned that the required notice describing employee rights under this new law will not be available from Oregon Bureau of Labor and Industries (BOLI) until mid- to late-January. Even so, it is important to remember that the law is fully effective on January 1st and that its limitations must be respected.
Interim Posting Option
Oregon employers have two options in approaching the interim period while we are waiting for BOLI’s notice to be finalized. Many employers will choose to comply with the law but wait to notify employees of their rights until the official poster is ready for distribution. While this is an acceptable solution, employers who opt for this approach should ensure that the limitations of the law are fully understood by managers and supervisors, and that compliance efforts have been made.
The other alternative is to utilize an unofficial posting that is intended to notify employees of their rights that are clear from the language of the statute. The advantages of this approach are the ease in showing good faith efforts at compliance, and the reality that managers and supervisors will be more sensitive to these issues if they know employees are learning of their new rights through the posting.
Sample Language
In the event you opt for the unofficial posting, here is language that can be utilized:
Oregon Employer Mandatory Meeting Guidelines
Under Oregon law effective January 1, 2010, an employer may not discharge, discipline, or otherwise penalize or threaten to discharge, discipline, or otherwise penalize or take any adverse employment action against an employee:
- who declines to attend or participate in an employer-sponsored meeting or communication if the primary purpose of the meeting or communication is to communicate the opinion of the employer about religious or political matters;
- as a means of requiring an employee to attend such a meeting or communication; or
- because the employee makes a good faith report, orally or in writing, of a violation or a suspected violation of this law.
The law does not prohibit an employer from requiring attendance at meetings that are not primarily about religious or political matters. The law also does not prohibit an employer from offering meetings, forums or other communications about religious or political matters for which attendance or participation is strictly voluntary. An aggrieved employee may bring a civil action in the circuit court of the judicial district where the violation is alleged to have occurred or where the principal office of the employer is located, no later than 90 days after the date of the alleged violation.
We will alert you when BOLI has finalized its posting and made it available to Oregon businesses.
State's New AED Law to Impact Some Businesses
Sudden cardiac arrest is one of the leading causes of death in the United States, claiming 350,000 lives annually. Starting January 1, Oregon buildings that are larger than 50,000 square feet and have more than 25 employees or visitors on a normal business day must have at least one Automated External Defibrillator (AED) on their premises.
We hope this information has been helpful to you. If you have questions about how these new requirements apply to you, please contact
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