COBRA Compliance: Federal and California Requirements for Employer Health Benefits

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) mandates that employers with 20 or more employees offering health benefits must allow former employees and their dependents to continue coverage after qualifying events such as termination, resignation, divorce, or death. COBRA ensures continuation rights under the employer's health plan, providing a critical safety net for those experiencing employment or family status changes.

Additionally, California law imposes further obligations on covered employers, requiring supplemental insurance protections and detailed written disclosures to comply with state regulations. This overview outlines the key federal and state regulatory requirements concerning COBRA compliance for employers, emphasizing the importance of understanding continuation coverage obligations and legal disclosures.