COBRA Compliance Center
Avoid $110/Day Penalties with Complete Compliance
⚠️ COBRA Non-Compliance Costs
Recent DOL audit: Manufacturing company fined $47,300 for late COBRA notices to 43 terminated employees
Federal COBRA Requirements
🏢 Which Employers Must Comply?
- 20+ employees on 50% of business days in prior year
- Offers group health plan to employees
- Private sector or state/local government
- Church plans exempt (but may voluntarily comply)
Note: Employers with fewer than 20 employees may be subject to state mini-COBRA laws in 40+ states
📋 Required Notices & Deadlines
| Notice Type | Deadline | Penalty |
|---|---|---|
| General Notice | 90 days from coverage start | $110/day |
| Qualifying Event Notice | 30 days from event | Process delays |
| Election Notice | 14 days from notification | $110/day + lawsuits |
| SPD with COBRA info | 120 days from plan effective | $110/day |
⏱️ Coverage Periods
- 18 months: Termination or reduction in hours
- 29 months: If disabled (SSA determination required)
- 36 months: Divorce, legal separation, death, Medicare entitlement, dependent child aging out
📝 COBRA Compliance Checklist
Essential 25-point checklist for DOL audit readiness:
COBRA provisions included in plan document and SPD
System to provide within 90 days of coverage
Process to identify and document all qualifying events
Automated system to never miss this critical deadline
Documented method for 102% premium calculation
Clear payment deadlines and grace period tracking
6-year retention of all COBRA records
Understanding of state-specific requirements
What Happens in a DOL COBRA Audit
Initial Contact
DOL sends investigation letter requesting COBRA documentation for specific time period (usually 2-3 years)
Document Request
You have 30 days to provide: All COBRA notices sent, qualifying event documentation, premium records, participant elections
Review Process
DOL examines compliance with deadlines, notice content requirements, proper beneficiary notification
Findings
Violations result in penalties, required corrections, and potential follow-up audits
⚠️ Real Case Study: $50,000 COBRA Penalty
Company: Tech startup with 75 employees
Issue: Laid off 12 employees, sent COBRA notices 45 days late
Investigation: Former employee filed DOL complaint after coverage gap
Result:
- $110/day × 45 days × 12 employees = $59,400 in penalties
- Required to extend COBRA coverage retroactively
- Personal liability finding against HR Director
- Follow-up audit scheduled for next year
This could have been avoided with automated COBRA notice generation...
Recent DOL Enforcement Actions
| Date | Company Type | Violation | Penalty |
|---|---|---|---|
| Oct 2024 | Healthcare Provider | Failed to send election notices | $127,600 |
| Sep 2024 | Manufacturing | No general notices provided | $43,890 |
| Aug 2024 | Retail Chain | Late election notices (30+ days) | $86,240 |
| Jul 2024 | Tech Company | Incomplete notice content | $22,000 |
| Jun 2024 | Financial Services | No qualifying event tracking | $156,200 |
Total Q3 2024 COBRA Penalties: $2.3 Million across 47 companies
Calculate Your Compliance Risk
COBRA Compliance Risk Assessment
High Risk
Reduce your risk to LOW with HRMax automated compliance
How HRMax Ensures Your Compliance
Automated Deadlines
Never miss the 14-day election notice deadline with automated tracking and generation
Complete Content
All DOL-required elements included in every notice, updated for regulation changes
Audit Trail
Complete documentation of all notices sent, when, and to whom for DOL audits
State Compliance
Automatic detection of state mini-COBRA requirements based on your location
Always Current
Forms updated within 24 hours of any federal or state regulation change
Expert Support
Built by COBRA compliance experts, backed by HR professionals
Don't Risk Another Day of Non-Compliance
Your Compliance Solution
- ❌ Risk $110/day penalties
- ❌ Personal liability exposure
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- ❌ Outdated templates
- ❌ No audit trail
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- ✅ Full legal protection
- ✅ 2 minutes per notice
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- ✅ Complete documentation
Less than 1 hour of penalty risk
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