Preventing COBRA Class Actions Starts With Notice Review

Employee Benefits and Executive Compensation associate, Amanda M. Karpovich, recently contributed an article to Law360 titled, “Preventing COBRA Class Actions Starts With Notice Review.” Amanda describes an uptick in the number of companies being targeted with class action lawsuits that allege their Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) election notices were legally deficient and/or did not comply. Unsuspecting employers such as Amazon, PepsiCo Inc., Best Buy, and Walmart for example, have recently succumbed to COBRA class actions and in some cases paid hefty settlement amounts and penalties. In the article, Amanda reminds employers that given this increase in litigation, they should take this opportunity to review all of their COBRA notices—not just their COBRA election notices— as well as their COBRA procedures to ensure compliance with timing and content requirements.

Click here to view the story on the Law360 website.

 

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