There has been a lot of talk and confusion about employee count and determining employees for health care compliance. One area employers may not realize where the employee count matters is how it will affect COBRA.

1. There has been a lot of talk and confusion about
employee count and determining employees for
health care compliance. One area employers may
not realize where the employee count matters is
how it will affect COBRA.
For COBRA purposes,
an employer needs to
count all employees
when determining
the employee count.
The part-time
employees are counted
as a fraction of a
full-time employee.
There are some exceptions to the employee count. Only common law
employees should be counted.
Employers will not need to include individuals in these positions as they
are NOT considered common law employees:
Employers need to keep in mind that COBRA will apply to employees in
the following areas:
D.C. Guam Puerto Rico Wake Island
U.S. Virgin Islands American Samoa Tha Panama
Canal zone
Any employer who sponsors a group health plan in any of the above
jurisdictions and meets the 20 employee count is subject to the same
COBRA requirements as companies in the 50 states. Employers should
not overlook common ownership in the equation.
Visit our Newsroom for more information on the Employee Count!
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