Sharon Quinn Dixon

Subscribe to all posts by Sharon Quinn Dixon

What’s in YOUR COBRA Notice? Insufficiencies Could Drain Your Wallet

SunTrust Banks learned an expensive lesson about COBRA compliance recently. It was sued for failure to send proper COBRA election notices after employees terminated employment. SunTrust’s agent for COBRA notice purposes, Xerox HR Solutions, actually sent timely COBRA notices to the former employees.  But two former employees/plaintiffs claimed that the notices were legally insufficient and, … Continue Reading

Don’t Forget About ACA Compliance with Staffing Firm Service Agreements

Applicable large employers – those with 50+ full-time employees (ALEs) – under the Affordable Care Act (ACA) must satisfy the law’s “employer mandate,” meaning that they may be assessed penalties for: Failing to offer minimum essential coverage to full-time employees and their dependents Offering eligible employer-sponsored coverage that is not affordable or does not provide … Continue Reading

Turn a FICA Sting into a FICA Benefit

The final chapter of an unusual FICA tax saga recently was ordered in the form of a settlement between Henkel Corporation and a group of its retirees. Although framed as a case involving retiree benefits, the case’s application is not that narrow. Henkel sponsored a nonqualified deferred compensation (“NQDC”) plan that provided monthly benefits after … Continue Reading

No Good Deed Goes Unpunished – Improper Extension of Benefits after Termination of Employment

You’ve always treated your employees fairly, even when the relationship doesn’t work out and you have to let the employee go or when you’ve had to terminate employees due to downsizing. Often, you agree to continue the employee’s benefits for a few months during a severance period. You know how important it is to have … Continue Reading

Let My People Go (to the Marketplace)

Earlier this year, the IRS announced that employers are permitted to allow employees to drop coverage under the employer’s fiscal year group health plan and sign up for marketplace coverage. The employer may do this based on the employee’s “reasonable representation” that he or she (and family members) have enrolled or intend to enroll in … Continue Reading
LexBlog