AB 2494: Employer notification: continuation coverage.

Existing federal law, the Consolidated Omnibus Budget Reconciliation Act of 1985, and known as COBRA, requires that certain employers provide former employees with continuation of benefits. COBRA requires that an employee be notified of the continuation of coverage for which the employee may be eligible upon certain qualifying events, including termination. Existing law requires all employers, whether public or private, to provide employees, upon termination, notification of all continuation, disability extension, and conversion coverage options under any employer-sponsored coverage for which the employee may remain eligible.

This bill would require all employers, whether public or private, to provide a notice to employees, following termination or reduction in hours, as specified, stating that the employee may be eligible for coverage under COBRA and that the employee will receive an election notice from the plan administrator or group health plan, as provided. The bill would authorize an employer to provide the notification via hard copy or via email to an employees email account if the employee elects to receive electronic statements or materials, as prescribed. The bill would prohibit an employer from discharging or taking other adverse action against an employee who does not elect to receive electronic statements or materials.