Common use of Employers Not Required to Offer COBRA Continuation Coverage Clause in Contracts

Employers Not Required to Offer COBRA Continuation Coverage. This section shall not apply to the Employer if the Employer is not required by law to offer COBRA continuation coverage. The Employer, for example, will not be not required to offer COBRA continuation coverage if the Employer qualified for the “small employer” exception to COBRA based on the number of employees that it employed during the previous calendar year. Generally, if this number is less than 20, then the Employer is not subject to COBRA. In the event, however, that the Employer has 20 or more employees as determined under COBRA (considering “controlled group” rules and special rules for part-time employees), this Article will apply as described above.