Obama signs new law extending COBRA subsidy and Unemployment Insurance

President Obama signed this bill into law on 12/19/2009 (P.L. No:111-118). This federal spending bill includes two important provisions:

1. Extended and expanded the COBRA subsidy program enacted under the American Recovery and Reinvestment Act (ARRA). This expands the COBRA premium subsidy period to employees who were/or are involuntarily terminated on or before 2/28/10. Employers who have affected employees will pay the 65% subsidy for employees COBRA payments and employees will only need to pay 35% of their COBRA coverage. The COBRA premium subsidy is extended from 9 months to 15 months and employers must notify the affected terminated employees.

2. Extended unemployment benefits through July 31, 2010. For example, an individual who runs out of all their unemployment benefits on or before 2/20/2010 may be eligible for an extension of an additional 14-20 weeks of benefits. All affected employees are encouraged to contact your state’s unemployment office to understand their detailed unemployment benefits. Each state, depending on their unemployment rates will have different weekly extentions.

10 Things All Employers Must Post

Employers need to check their Human Resources bulletin boards to ensure the posting notices are current. All notices should be posted prominently where both applicants and employees can readily see them.

If your employees do not speak English, you may be required to post in their language.

1. Consolidated EEO poster that covers Title VII, ADEA, ADAA, EPA and Veterans. The poster is called “Equal Employment Opportunity is the Law”.

2. Employee Polygraph Protection Act (EPPA) notice.

3. Fair Labor Standards Act (FLSA) covers minimum wage, overtime, and child labor laws. (New minimum wage changed 7/24/09 to $7.25).

4. Family and Medical Leave Act (FMLA) notice only effecting employers with over 50 employees. This notice should also reflect new military and family leaves.

5. Uniform Services Employment and Reemployment Rights Act (USERRA) notice. The post is called “Your Rights Under USERRA”.

6. Occupational Safety and Health Act (OSHA) notice. The poster is called “Job Safety and Health–It’s the Law”

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The American Recovery and Reinvestment Act of 2009 (ARRA)

The Stimulus Package signed by President Obama changes COBRA.This requires employers to pay a 65% subsidy toward health care coverage premiums for up to 9 months; employers can deduct those costs from their Social Security and Medicare taxes.

This means individuals who have been involuntarily terminated between September 1, 2008 and December 31, 2009 will be eligible for the COBRA premium assistance, along with their family. This takes effect March 1st.