layoffs

6396208 · December 2008

We are planning some layoffs for the end of the year waiting till next year to reopen the jobs (the other companys budgets for 2009). Because of the type of jobs they do not fall under the Warn act; all the employees have been told the jobs are temporary. We do have over 100 employees and the layoffs may equal to over 50 employees but not in one state.

My questions: is there a specific time frame we can have them on layoff status before we have to cancell the insurance as we pay the employees insurance 100% (but not the families) ? I think we are looking at possibly 2 - 4 weeks at the most. So I really did not wish to deal with COBRA if it was not nescesary. Any and all thoughts on something I may be missing will be appreciated.

efeldman · December 2008

You must offer them COBRA. You are able to discontinue their insurance on their last day, but can choose to continue their benefits for as long as you wish as a form of severance (you should state that continuation in your separation agreements).

6396208 · December 2008

Thanks

heather1027 · May 2009

As an FYI for future readers, I would consult my insurance carriers as they have restrictions on how long a "non-active" employee can continue to receive benefits. We developed our company policy of benefits/layoffs based on the limiting factors of our providers.

layoffs

Comments