FAQs

 Where a loss of coverage is a result of an employee’s termination of employment (other than by reason of gross misconduct) or reduction in hours, qualified beneficiaries are entitled to continue coverage for a maximum of 18 months. 

Where a loss of coverage is a result of any of the following, qualified beneficiaries are entitled to continue coverage for a maximum of 36 months: 

· Death of a covered employee; 

· Divorce or legal separation of a covered employee from the covered employee’s spouse;

· A covered employee becoming entitled to Medicare benefits; and 

· A dependent child ceasing to be a dependent child under the terms of the health plan. 

Where a loss of coverage is a result of an employee’s termination of employment (other than by reason of gross misconduct) or a reduction in hours and a qualified beneficiary is determined by the Social Security Administration to be disabled before, at or within 60 days of the date of the qualifying event, all qualified beneficiaries within that family are entitled to COBRA for a maximum period of 29 months. To benefit from this extension, any qualified beneficiary within the family must notify the plan administrator as required by the reasonable procedures established by the plan administrator. 

Where a qualified beneficiary was determined disabled by the Social Security Administration prior to the qualifying event, the qualified beneficiary is considered to meet the statutory requirement of being disabled “within the first 60 days of COBRA coverage.” 

 If the employee was enrolled in Medicare prior to his or her termination or reduction in hours (for example, retirement), the employee is entitled to 18 months of COBRA continuation coverage. Where the spouse or dependent is covered under the plan on the day before the employee's termination or reduction in hours, the spouse and dependent are entitled to COBRA continuation coverage for the longer of:   

· 18 months from the date of the employee's termination or reduction in hours; or 

· 36 months from the date the employee became enrolled in Medicare.

 If the employee enrolls in Medicare after his or her termination or reduction in hours (for example, retirement), the employee loses COBRA continuation coverage. A spouse or dependent covered under the plan at the time of the termination or reduction in hours is entitled to 18 months of coverage from the date of the termination or reduction in hours. 

COBRA continuation coverage will terminate before the maximum coverage (that is, 18, 29, 36 months) period if: 

· COBRA premiums are not made in a timely manner; 

· The employer ceases to provide a health plan to any employee;

· After electing COBRA continuation coverage, the qualified beneficiary first becomes covered under another health plan; or   

· After electing COBRA continuation coverage, the qualified beneficiary first becomes entitled to Medicare (Part A or B). 

Provided that a qualified beneficiary has received no less than 18 months of COBRA continuation coverage, COBRA continuation coverage will terminate where COBRA coverage was extended to 29 months due to a disability as determined by the Social Security Administration, and the Social Security Administration later determines that the qualified beneficiary is no longer disabled. 

Where an individual is covered under COBRA, but not a qualified beneficiary, the individual loses coverage when the qualified beneficiary is no longer covered under COBRA. 

COBRA premiums may not exceed 102 percent of the cost to the plan for similarly situated beneficiaries with respect to whom a qualifying event has not occurred (without regard to whether such cost is incurred by the employer or employee). 

Where COBRA continuation coverage is extended due to disability, COBRA premiums may not exceed 150 percent of the cost to the plan for similarly situated beneficiaries with respect to whom a qualifying event has not occurred (without regard to whether such cost is incurred by the employer or employee) for months 19 through 29. Where the disabled qualified beneficiary is no longer covered under the plan, the remaining qualified beneficiaries within the family are entitled to continue coverage for up to 29 months at an amount not to exceed 102 percent of the cost to the plan.

What are the recordkeeping requirements under the Family     and Medical Leave Act (FMLA)?

Employers covered by the FMLA must make and keep records regarding their compliance obligations under the FMLA. These records must be preserved for a minimum of three years.

Covered employers who have FMLA-eligible employees must maintain records that disclose the following:

· Basic payroll and identifying employee data

· Dates that FMLA leave is taken

· Hours of FMLA leave that are taken, if taken in increments of less than a day

· All employee and employer FMLA notices provided

· Any documents describing employee benefits or employer practices or policies regarding paid and unpaid leave that is taken

· Premium payments of employee benefits

· Records of any disputes regarding the designation of leave

Covered employers that have no FMLA-eligible employees must still maintain basic payroll and identifying employee data.

Employee FMLA records relating to medical certifications, recertifications or medical histories of employees or their family members must be maintained as confidential medical records in separate files from employee personnel files. However, individuals such as managers, safety personnel or government officials investigating compliance may be informed of relevant FMLA medical information as necessary. In addition, these records may be subject to further confidentiality requirements under the Americans with Disabilities Act (ADA).

Employers are not legally required to provide severance pay to terminated    

employees unless company policies or employment contracts specify that severance pay will be provided.

Many employers offer severance pay, but in order to receive it, employees must typically sign a document releasing the company from any liability for termination. Severance pay and packages vary, but they often include some of the following:

· Payment for unused paid time off

· Payment based on length of service

· Payment in lieu of a required notice period

Employers should note that providing severance pay to some employees and not others could lead to charges of discrimination and other litigation. A nondiscriminatory, consistent severance policy should be established and followed. 

There isn’t an exhaustive list of questions employers should avoid asking, but employers need to be careful that any questions asked cannot be interpreted as discriminatory. To help avoid discrimination claims, information requested from the applicant should be directly related to the position he or she is interviewing for. Acceptable topics include previous work experience, education and skills that are necessary for the position. The following are some suggested subjects to generally avoid in an interview:

· Asking questions that, if the applicant responded, would reveal whether he or she belongs to a protected group, or how he or she feels about a controversial issue.

· Inquiries about an applicant’s marital status, the existence of (or probability of having) children or his or her age. Considering age in hiring decisions may violate the Age Discrimination in Employment Act, unless age is a legitimate qualification for the position.

· Questions about an applicant’s criminal history. Basing a hiring decision on criminal history may violate Title VII of the Civil Rights Act. Also, several states limit how and when the employer may use arrest and conviction records to make employment decisions. 

· Inquiries concerning child care arrangements, mode of transportation or home ownership. Rather than asking applicants if they have a car, it is generally better to ask  if the applicant has reliable transportation to report to work. 

· Questions about citizenship or national origin. However, employers can, inquire about an applicant’s ability to show authorization to work in the United States, if hired. 

· Any questions related to medical conditions or medical history. However, if you know an applicant has a disability (because it is evident or the applicant has volunteered that information) it may be reasonable to question whether the disability might pose difficulties for the individual in performing essential job functions. If so, the employer may begin a dialogue with the applicant to determine whether he or she would need reasonable accommodations in order to perform any tasks and what the accommodation(s) may be. 

Previous salary.  Massachusetts has Pay Equity law that prohibits this question. 

Some of these questions are permitted after a job offer is made, but should only be asked if there is a business necessity. When in doubt, it’s better to err on the side of caution than to ask a problematic question and risk a discrimination claim. Train anyone who will be interviewing candidates, and create standard interview templates to avoid accidentally asking discriminatory questions. 

 Total compensation statements highlight the monetary value of your benefits package, including the perks that may be overshadowed by traditional benefits. These statements are not required, but providing them may increase employee morale and loyalty. Typical total compensation statements may include the following:

· Salary

· Bonuses

· Commissions

· Stock options

· Stock grants

· Employee stock purchase plan

· Retirement plan

· Social Security contributions

· 401(k) matching contributions

· Paid time off

· Coverages for health, life and disability

· Wellness rewards (discounts, cash bonuses, etc.)

Providing these statements increases employee awareness of how much the company spends on his or her benefits. Informing employees of the behind-the-scenes expenses that the company covers can increase retention rates and morale.

Another reason to provide total compensation statements is that health care reform requires employers to report the aggregate cost of employer-sponsored group health plan coverage on their employees’ Forms W-2. For employers that file fewer than 250 Forms W-2, this is currently optional. Providing total compensation statements may make providing this information at tax time easier.