Economic Stimulus Bill Adds COBRA Subisdy

Employers pay attention to this news from Jackson Lewis - Economic Stimulus Bill Adds COBRA Obligations for Employers:

"First, the Act will provide a COBRA premium subsidy for certain individuals who were involuntarily terminated during a certain period of time. At this point, it is not clear how, as an administrative matter, the subsidy will be provided. Employers will be responsible for notifying individuals who are eligible for the COBRA subsidy.

Second, the COBRA provisions may impact the terms of a reduction in force (“RIF”) if the employer will provide payments for COBRA premiums. Employers will need to analyze how the COBRA subsidy affects the way in which a RIF is to be structured when the employer pays for COBRA premiums."