COBRA and hours reduction

I have an employee going from fulltime exempt to parttime non-exempt. This is a [B]voluntary[/B] stepdown. She is currently on our plan as EE+child, but our plan does not include PTers. Do I have to offer COBRA?


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  • Frank,

    Below is an excerpt from the HR Guide to Employment Law:

    [I]"If your organization has 20 or more employees, an employee who is leaving your company or whose hours are reduced generally can stay on your health plan under COBRA for up to 18 months; his covered family members can stay on the plan under COBRA as well."[/I]

    It doesn't matter whether the employee leaves or reduces hours voluntarily or not, he/she is still entitled to COBRA if your company meets the criteria as indicated above.


    PS: This manual is available from HRHero and I highly recommend it.
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