Employers Cautioned On The Use Of
"Gross Misconduct" Provision To Deny COBRA Rights.

Just a cautionary note to employers. Even in cases where gross misconduct is "obvious" if the affected employee is not offered COBRA and then successfully defends against the charges in court, the employer can be in for a "double whammy;" losing the case, and then having to deal with a follow-up action for COBRA violation coupled with the possibility of becoming financially responsible for all claims incurred in the interim. This is a particular risk with self-funded plans. In more less "formally" prosecuted situations where evidence is commonly disputable, we always advise clients to offer COBRA.

We are all in agreement that someone guilty of gross misconduct is not and should not be entitled to the protections of COBRA. As a practical matter, however, as well as from a liability perspective it may be wiser to properly notify and offer benefit continuation under COBRA in any case where guilt is not an absolute and provable certainty.

About Benesyst
Benesyst is an established, high technology, high performance benefit administration outsourcer. Benesyst is the creator of BeneSmart™, a state-of-the-art, online enrollment and eligibility management solution that revolutionizes the way systems "think" about and manage benefits. Benesyst is also a "best of breed" Flexible Benefit Account (all types), HIPAA/COBRA/State Continuation and Short-Term Disability Benefit Administrator, offering high-touch, high performance innovative solutions in these traditionally outsourced services.
www.benesyst.net.