An Administrator's Guide to California Private School Law

Chapter 4 - Employment Contracts And Separation Of Employees

discrimination in violation of Title VII. The district court granted summary judgment in favor of Boeing. The Ninth Circuit Court of Appeals reversed. The Ninth Circuit found that a jury could conclude that Wrede's RIF assessment was pre-textual. Her prior evaluations were positive and her supervisor could not offer a non-conclusory explanation for her lower rating. Moreover, several of Wrede’s coworkers and managers offered detailed testimony regarding why the RIF assessments of Wrede’s skills were not credible. Finally, the fact that six men retained employment while Wrede did not added to the appearance of pretext on the part of Boeing.

Whether an employee is separated or laid off, earned but unpaid wages are owed to the employee immediately upon discharge. 457 Please see the Wage and Hour Laws chapter for additional information.

LCW Practice Advisor

B. COBRA When an employee is laid off or separated for reasons other than gross misconduct , he or she may be entitled to benefits under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) or the California Continuation Benefits Replacement Act (Cal-COBRA), which largely mirrors federal law. 458 Under COBRA, the employee pays up to 102% of the full premium for continued insurance coverage. 459 The employee must be provided the identical group health insurance provided by the school to its current employees. 460 (The 2% represents an administrative fee.) COBRA also covers an employee’s qualified beneficiaries, as paid by the employee. 461 COBRA generally provides coverage for 18 months. 462 That period may be extended if the employee becomes disabled, as determined by the Social Security Administration. 463 1. N OTIFICATION R EQUIREMENTS The school must notify its health plan’s administrator of the employee’s termination within 30 days after an employee's termination. 464 Schools should have a process by which employees are notified of their COBRA rights at the time of termination. Plan participants and beneficiaries must be sent an election notice no later than 14 days after the plan administrator receives notice of the termination (or other qualifying event). 465 The individual then has 60 days to decide whether to elect COBRA continuation coverage. 466 The person has 45 days after electing coverage to pay the initial premium.

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