Urgent COBRA question! re spouse !!

HR in Okla

Need help fast! We are about to terminate a high level person for an offense that, in my opinion, would constitue "gross misconduct." Question is: If we deny him COBRA, what about his covered spouse? Do we need to offer it to her?

I personally feel it is the right thing to do, but what is the law? Can't find anything specific to this situation.

Gillian

I can't answer the question but do you really want to refuse COBRA. Will a jury view the offense as gross misconduct in the same way that you do? Would a jury understand punishing family members (not eligible for COBRA if that is the law) for offenses of the employee? Will the jury think that this is "piling on"?

bsa

I agree with Gillian. Your definition of gross misconduct and a juries will probably not match, review your risks without prejudice before you classify a termination as gross misconduct. However, the way I understand COBRA, the spouse would be entitled to continue because she is a qualified beneficiary.

Margaret Morford

While I know COBRA allows you to deny COBRA for gross misconduct, every HR and/or lawyer I have ever talked with has never denied COBRA rights because they know they would look bad in court. Everyone above is right. It's one less legal hassle your company will have. While the jury may agree this employee should be denied COBRA for whatever he/she did, they will still feel sorry for the spouse and/or kids and will find a way to decide against the company.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

njjel

I concur with the above and since it really cause no harm or cost to the company, give him the COBRA.

HR in Okla

Thanks to all of you. I did not feel comfortable denying COBRA, especially to the spouse, but needed more info. on the law's application to spouses. I believe the reasons would be considered "gross misconduct" by most reasonable people, even a jury, but there probably are enough other things to consider in this situation without worrying about COBRA.