Congress passed legislation on December 19th extending the COBRA subsidy eligibility period and coverage period. The extension came as part of the Fiscal Year 2010 Defense Appropriations Act.
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Federal Agency Employment Law Update
US Department of Labor Update
COBRA Subsidy Extension Model Forms Published
By Christopher W. Olmsted
The government has published updated model forms for the recently extended COBRA subsidy.
Congress passed legislation on December 19th extending the COBRA subsidy eligibility period and coverage period. The extension came as part of the Fiscal Year 2010 Defense Appropriations Act.
The 2010 DOD Act extends the COBRA premium reduction eligibility period for two months until February 28, 2010. This means that employees who are terminated on or before February 28, 2010 may be eligible for the subsidy.
Additionally, the legislation increases the maximum period for receiving the subsidy for an additional six months (from nine to 15 months).
The legislation also helps those who already exhausted their subsidy period under the original legislation. Individuals who had reached the end of the reduced premium period before the legislation extended it to 15 months will have additional time to pay the reduced premiums related to the extension. To continue their coverage they must pay the 35% of premium costs by 60 days after date of enactment or, if later, 30 days after notice of the extension is provided by their plan administrator.
Individuals who lost their subsidy and paid the full 100 percent premium in December 2009 should be told to contact their plan administrator or employer sponsoring the plan to discuss a credit for future months of coverage or a reimbursement of the overpayment.
In addition to the notice requirements already mandated under ARRA, the 2010 DOD Act requires employers to provide notice of the new rights.
The employer or its group health plan administrator must give notice to any individual who was already eligible for the subsidy as of October 31, 2009. The notice must be given within 60 days of enactment (i.e. by February 21, 2010). The notice must also be given within 30 days to any individual who becomes eligible for the subsidy (i.e. terminated) on or after October 31, 2009. The new notice must provide information regarding the 2010 DOD Act amendments.
The Act also requires notice to individuals who either dropped COBRA or paid the full premium for it when their nine-month subsidy ended. The notice explains that they have two options: to either reinstate their coverage retroactively at the 35% subsidized rate, or to receive a credit or refund.
The DOL has published the updated model forms on its website, which can be found at this link.
Related Articles:
Congress Extends COBRA Subsidy
DOL COBRA Fact Sheet
DOL Model Notices For Employer Use (pre DOD Act)
DOL Press Release
Read the 2010 DOL Legislation
Barker Olmsted & Barnier APLC Articles Regarding COBRA subsidy:
http://www.barkerolmsted.com/¬news/¬legal-updates/¬newsletter0106.php
http://www.barkerolmsted.com/¬news/¬legal-updates/¬newsletter0112.php
Federal Discrimination Law Update EEOC Statistics Show Rise In Claims
By Christopher W. Olmsted
The EEOC has published data regarding fiscal year 2009 private sector job bias charges. Overall, approximately 93,000 claims were filed during the year, a slight decrease from the approximately 95,000 filed in 2008.
The data shows that private sector job bias charges alleging discrimination based on disability, religion and/or national origin hit record highs. Disability claims increased to 21,451 from 19,453 in 2008. Religious discrimination claims increased slightly over 2008 figures, to 3,386, and national origin claims increased slightly to 11,134.
According to the EEOC’s website, the number of charges alleging age-based discrimination reached the second-highest level ever. In 2009, 22,778 such claims were filed. Continuing a decade-long trend, the most frequently filed charges with the EEOC in FY 2009 were charges alleging discrimination based on race (36%), retaliation (36%), and sex-based discrimination (30%).
“The near-historic level of total discrimination charge filings may be due to multiple factors, including greater accessibility of the EEOC to the public, economic conditions, increased diversity and demographic shifts in the labor force, employees’ greater awareness of their rights under the law, and changes to the agency’s intake practices that cut down on the steps needed for an individual to file a charge,” reports the EEOC on its website.
The EEOC’s statistics can be found at this link.
IRS Adjusts Mileage Reimbursement Rate
By Christopher W. Olmsted
In December 2009, the Internal Revenue Service issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a vehicle was set at 50 cents per mile.
The new rates for business purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
In California, the California Supreme Court ruled in 2008 that it is permissible in some circumstances to reimburse expenses by means of enhanced compensation. For details, follow this link: Gattuso v. Harte-Hanks Shopper, Inc.
Additional Resources:
More information from the IRS regarding the mileage reimbursement rate.
More Legal Update articles.
Download entire February 2010 Legal Update in PDF format.
This article is intended as a brief overview of the law and are not intended to substitute as legal advice. Any questions or concerns regarding any statute or case law should be addressed to a licensed attorney. Copyright © 2010 by Barker Olmsted & Barnier, APLC. San Diego, California. All rights reserved.
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