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.
Businesses of ALL shapes and sizes are being forced to pay out big bucks for misclassifying employees and failing to pay proper overtime. Is your company vulnerable? Department of Labor officials estimate that more than 70% of employers are out of compliance with the Fair Labor Standards Act (FLSA)!...Click here to find out more.