Exercise Caution Before Relying on the Gross-Misconduct Exception Under COBRA by Brandon P. Long


A little more than two months ago, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“ARRA”). Since then, employers have been scrambling to understand ARRA’s impact on the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly known as COBRA.

By now, employers generally understand that under ARRA certain eligible employees who are involuntarily terminated between September 1, 2008 and December 31, 2009 are eligible to pay 35% of the cost of COBRA continuation coverage, and the federal government will subsidize the remaining 65% for up to nine months.

Article authored by McAfee & Taft attorney: Brandon P. Long.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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