Terminating the Employment Relationship

In addition to the above, the regulations delineate other situations that give rise to disqualification for benefits due to misconduct. The following are a few examples: Failure to obey an employer’s rules or orders; 411 Absenteeism from work; 412 Failure to perform work or neglect of duties; 413 Tardiness; and 414 Violations of law. 415 Thus, in making a decision whet her or not to challenge a claim and/or the EDD’s decision to grant unemployment compensation, an agency should consider whether the basis for termination constitutes misconduct as defined under the Unemployment Insurance Code. C. C OBRA N OTIFICATION The fed eral Comprehensive Omnibus Budget Reconciliation Act of 1985 (“COBRA”) 416 requires employers that sponsor group health plans with 20 or more employees, to notify their employees of the optional availability of continuation coverage under the employer’s healt h insurance plan because of the occurrence of a listed “qualifying event”, such as termination. The plan administrator, who is usually also the employer, must notify the beneficiary of their rights under COBRA within 14 days of receiving notice that a qualifying event has occurred. 417 In the event the employer is not the plan administrator, the employer has 30 days to notify the plan administrator that a qualifying event has occurred, and the plan administrator then has 14 days from the date of notification to notify the employee.

COBRA permits statutory penalties against the plan administrator for failure to comply with the notice requirements. 418 Consequently, the most important post-separation obligation with respect to COBRA is to issue a letter notifying an employee of eligibility or denial.

LCW Practice Advisor

As a general matter, if an employee only has access to a plan, but has not elected coverage under the plan – i.e., employee had the opportunity to have medical coverage, but did not take advantage of the opportunity – the employee is not considered a "covered employee" for purposes of COBRA. 419 1. C AL -COBRA Cal-COBRA is a California law that is similar to COBRA. Cal-COBRA applies to employers and group health plans that cover 2 to 19 employees. It allows employees to maintain insurance for up to a total of 36 months after a qualifying event, such as termination.

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