Disability benefits for exemployees — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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.
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