Legal Question in Employment Law in New Jersey

Question About: Federal COBRA Continuation Coverage Assistance Under ARRA - legislation enacted by Congress.

As part of my separation agreement with my former employer - I was promised nine months of continued medical, dental and vision coverage at the employee rate. On September 11, the company promised subsidy payment ended. However, per Federal Law I qualify for up to 9 months of Federally Mandated subsidy (65%). I am contending that my employment separation agreement is separate from the recent Federal Law mandate. My former employer is trying to co-mingle their contractual obligation with the Federal Mandate. Can they do this?

Since my former employer promised by contract to subsidize my Cobra independent of the Federal Law, do they have a legal requirement to offer me 9 months of subsidy apart from my separation agreement?


Asked on 12/03/09, 12:05 pm

1 Answer from Attorneys
Randall Brett Law Office of Randall P. Brett

This is a good question. There is precident for having the subsidy run concurrent with the contractual obligation but a strong argument can also be made for having the periods be consecutive. The actual language of the separation agreement would need to be reviewed. I suggest that you make an appointment with my office for a consultation, at which time we could discuss the issue in more detail as well as the practicality of contesting your employer's position.

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Answered on 12/08/09, 12:39 pm


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