Discussion #2
Select one benefit and compliance issue identified in Module 3
and share why you feel it is a potentially risky one of which all organizations need to be aware.
Use a minimum of one reference from the class materials. No need to respond to other students.
Working for a small business, I have found that many employees do not know of or know if they are qualified for COBRA. COBRA is a mandated benefit that must be offered to employees if they have health benefits offered by their company and are terminated or reduced hours which disqualifies their eligibility for enrollment (University of Minnesota, 2016). This can become a compliance issue for companies if their HR or management is not up to date with COBRA requirements and is not offering COBRA to employees who are eligible. Often in small businesses there is a disconnect of understanding between when and when not to offer COBRA to employees. If an employee is terminated, but not enrolled in any company benefits, the employers does not have to offer COBRA. However if the employee is enrolled and terminated, or reduced hours which disqualify their eligibility, the employer must alert the employee they can sign up for COBRA benefits. Not knowing when or when not to alert employees of this benefit can seriously hurt the businesses and its reputation, and also put employees in hard positions as
they find themselves without healthcare coverage. It is best if the company designates an HR rep to oversee this benefit, or the company should use a 3
rd
party broker to handle these transactions and alerts for them.
University of Minnesota. (2016) Chapter 6.1 Goals of a Compensation Plan. Human Resource Management.
https://open.lib.umn.edu/humanresourcemanag
ement/chapter/6-1-goals-of-a-compensation-plan/
