News & Analysis as of

Employee Benefits Termination

Fox Rothschild LLP

Stock Options are Not Wages Under the California Labor Code

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In a win for California employers, the California Court of Appeal held that stock options are not wages. A stock option is a contractual right to buy company stock at a certain price regardless of whether the stock price...more

Foley & Lardner LLP

Don’t You Forget About Me: Terminating Employees and Benefits to Think About

Foley & Lardner LLP on

No matter the size of your organization, at some point in time employees leave. As we noted previously, it behooves human resources and other departments to provide departing employees with an exit letter that includes...more

Stikeman Elliott LLP

Eternal Sunshine of the Stock-less Mind: The Judicial Saga on Treatment of Equity-Based Incentives upon Termination of Employment

Stikeman Elliott LLP on

What is the appropriate treatment under Quebec law of the equity-based incentives of an employee, upon termination of their employment without cause (serious reason)? Twenty years of case law suggest the question is all but...more

Dechert LLP

Key Developments for Employers in the UK - Issue 4

Dechert LLP on

Welcome to the fourth edition of The Employment Edit – a summary of the most important recent cases and news affecting employers in the UK. We hope you find this newsletter helpful and informative. In this edition we look at:...more

Littler

Amended Maine Law Will Require Vacation Payout When Employment Ends

Littler on

Maine’s governor recently signed H.P. 160 - L.D. 225, amending the state’s final wages statute to require that “[a]ll unused paid vacation accrued pursuant to the employer's vacation policy on and after January 1, 2023 must...more

Dickinson Wright

IRS Guidance on COBRA Subsidy, Part III: Claiming the Premium Assistance Credit

Dickinson Wright on

Under the American Rescue Plan Act of 2021 ("ARPA"), a 100% COBRA subsidy is available to qualified beneficiaries who lose coverage due to an involuntary termination of employment or reduction in hours. The subsidy is...more

Partridge Snow & Hahn LLP

IRS FAQ Expands Free COBRA Entitlement

On May 18, 2021, the Internal Revenue Service published guidance in the form of a series of 86 questions and answers (“FAQ”) that address the American Rescue Plan Act of 2021’s (“ARPA”) continuation health coverage in the...more

Alston & Bird

IRS Provides 86 Answers to 86 Questions About the COBRA Subsidy

Alston & Bird on

Our Employee Benefits & Executive Compensation Group summarizes the IRS’s 86 Q&As about the COBRA premium assistance subsidy and offers takeaways employers can use to guide their path ahead of the May 31 deadline....more

Nelson Mullins Riley & Scarborough LLP

COBRA Subsidies are Revived — Last-Minute Guidance May Have Expanded Your Duties

New guidance has been issued to clarify the Subsidized COBRA obligations imposed on employers and plan sponsors by the American Rescue Plan Act of 2021 (“ARPA”). This guidance comes at the last minute, as the deadline to send...more

Dickinson Wright

IRS Guidance on COBRA Subsidy, Part II: Determining Assistance Eligible Individuals and Dealing with the Extended Election Period

Dickinson Wright on

Under the American Rescue Plan Act of 2021 ("ARPA"), a 100% COBRA subsidy is available to qualified beneficiaries who lose coverage due to an involuntary termination of employment or reduction in hours.  The subsidy is...more

Dickinson Wright

May 31, 2021 Notice Deadline Approaching for New COBRA Subsidy Relief

Dickinson Wright on

The American Rescue Plan Act of 2021 (“ARP”) includes a 100% COBRA temporary subsidy for certain eligible individuals (“Assistance Eligible Individuals”) who lost health care coverage due to an involuntary termination of...more

Saul Ewing LLP

Guidance Issued on Implementation of ARPA COBRA Premium Subsidy

Saul Ewing LLP on

Group health continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”) permits certain group health coverage to be continued by participants and beneficiaries (“qualified beneficiaries”) when...more

Baker Donelson

UPDATE: Administrative Guidance Issued Regarding Implementation of COBRA Subsidies

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The American Rescue Plan Act of 2021 (ARPA) includes a subsidy structure that is designed to fully subsidize COBRA for employees and family members losing group health plan coverage due to an involuntary termination of...more

Nelson Mullins Riley & Scarborough LLP

COBRA Subsidies are Revived — Update

The American Rescue Plan Act of 2021, signed by President Biden on March 11, 2021, (“ARPA”) includes generous provisions granting eligible individuals who have lost their jobs or had a reduction in hours (and their family...more

Bressler, Amery & Ross, P.C.

COBRA Subsidy to Ease Pandemic Impact But Consider the Cost to Employers

THE COBRA SUBSIDY - On March 11, President Biden signed the American Rescue Plan Act of 2021 (ARPA) into law. Among other provisions, ARPA provides for a 100 percent COBRA subsidy for up to 6 months for anyone who lost health...more

Arnall Golden Gregory LLP

COBRA Subsidy Requirements Under the American Rescue Plan Act of 2021

Among many other pandemic relief provisions, the recently enacted American Rescue Plan Act of 2021 (“ARPA”) includes provisions for certain (a) COBRA subsidies, (b) extended COBRA election periods, and (c) related notice...more

Dickinson Wright

New COBRA Subsidy Available April 1, 2021

Dickinson Wright on

The American Rescue Plan Act of 2021 ("ARPA") includes a 100% COBRA subsidy for "assistance eligible individuals" during the six-month period of April 1, 2021 through September 30, 2021. Following is a summary of the COBRA...more

BakerHostetler

Employers May Need to Update Their Severance Agreement Templates by April 1

BakerHostetler on

Acronyms make us do things. AWOL makes us go looking for someone, BOGO makes us buy two of something we didn’t need one of, and NSFW makes us cover our screen and hope no one has already walked by....more

Patterson Belknap Webb & Tyler LLP

American Rescue Plan Act: COBRA Premium Subsidies and Increased Limits for Dependent Care Benefits

On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”) which is another coronavirus stimulus package aimed at speeding up the United States’ recovery from the economic and health...more

Clark Hill PLC

April 1 Brings Major COBRA Changes Under ARPA

Clark Hill PLC on

Beginning April 1, the recently passed American Rescue Plan Act of 2021 (“ARPA”) implements temporary, but significant changes to COBRA, including new notices, government subsidies, and second election windows. Additional...more

Davis Wright Tremaine LLP

Employers Must Take Action on Temporary COBRA Subsidy by May 31, 2021

The American Rescue Plan Act (ARPA) provides a 100 percent COBRA subsidy to eligible individuals from April 1, 2021, through September 30, 2021 (Assistance Period). Eligible individuals pay nothing, and employers receive a...more

BakerHostetler

FAQs: American Rescue Plan Act of 2021 COBRA

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Q: Does the American Rescue Plan Act of 2021 (ARPA) impact group health plans? A: Yes, ARPA makes temporary but significant changes to Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) coverage. ...more

Nelson Mullins Riley & Scarborough LLP

COBRA Subsidies Are Revived

The American Rescue Plan Act of 2021, signed by President Biden on March 11, 2021, (“ARPA”) includes generous provisions granting eligible individuals who have lost their jobs (and their family members) the right to continue...more

Verrill

Partial Plan Terminations – An Update

Verrill on

In our April 2020 post, we detailed how employee layoffs can cause a qualified retirement plan to undergo a “partial termination,” resulting in required 100% vesting of the affected employees’ benefits. As 2020 drew to a...more

Fisher Phillips

IRS Guidance On The Effect Of COVID-19 On Partial Plan Terminations

Fisher Phillips on

COVID-19 has forced many employers to reduce their workforce through furloughs or layoffs. These reductions may cause employers to experience a partial plan termination of their qualified retirement plans, which requires 100%...more

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