Eligible for COBRA? Co-ops?

pmschwartz

I have a group that is close to being cobra eligible but they want to know if co-ops count towards their 20 employees. Can you help me out.

ERISAmaven

For purposes of the small-employer exception to COBRA coverage, all "common-law" employees are counted to determine if the employer meets the 20 employee threshhold. This means that some individuals who may be covered under an employer's group health plan (such as independent contractors and directors) are not counted for this purpose. However, in order to be an employee an individual must be performing services in return for compensation. Thus many "co-ops" and other "interns" would not be conted as an employee for COBRA purposes. It depends on the nature of the particular program, does it provide training and experience only, or does the student perform services for which he or she is compensated?

pmschwartz

That is what I thought so I definitely appreciate your guidance!  Thanks so much!