Our team of experts fields real-life, everyday questions from HR managers and gives practical answers that can be applied by any HR pro in the same situation.
Does COBRA cover notices about life insurance?
Question:
We offer company-sponsored life insurance to our employees. The policy has a conversion option if an employee is laid off. Are we obligated under COBRA to send out notices informing people of their conversion rights?
Answer:
No. COBRA regulations cover continuation of health insurance and do not apply to life insurance. That’s the word from Ed Fensholt, an attorney who specializes in COBRA.
Some state insurance regulations cover companies’ obligations about conversation notifications, and you may want to check your state’s regs to see that your procedures are OK.
Handling salaried nonexempts
Question:
We know that anyone making less than $455 a week is now considered nonexempt and eligible for overtime pay. But is it OK to pay someone a fixed salary of less than $455 a week? And if so, what happens when that person works more than 40 hours in a week?
Answer:
First, you can pay someone a fixed salary of less than $455 a week, according to employment-law attorney John Lowe. That person still is considered nonexempt.
Second, if that person works more than 40 hours in a week, you’re obligated to pay overtime. Because of the overtime factor, it’s wise to have the person record the hours worked each week.
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