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What Employees Are Counted for Purposes of COBRA’s Small Employer Exception?


QUESTION: We understand there is a small employer exception to COBRA for employers with fewer than 20 employees. What employees should we count for purposes of this exception?

ANSWER: A group health plan is not subject to COBRA for any year if all employers maintaining the plan together employed fewer than 20 employees on a typical business day during the preceding year. Click the link below for general guidelines for which employees must be counted.

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