Your company has no legal obligation to offer disability benefits to former employees. A recent decision by the U.S. Court of Appeals for the 4th Circuit effectively prevents an ex-employee from demanding disability payments under the Consolidated Omnibus Budget Reconciliation Act. COBRA requires only that employers offer health care coverage for 18 months after an employee leaves his job. The court pointed out that disability payments are meant to replace lost wages, as opposed to medical insurance, which covers an individual’s health care costs.
Even one payroll mistake can damage your standing in the office — and possibly your career. It’s important to spot the holes in your employee pay compliance before the feds or state agencies do....Click here to find out more.