After weeks of debate, late last evening, President Obama signed into law the Continuing Extension Act of 2010, which extends, among other unemployment benefits, the COBRA subsidy to May 31, 2010. Extended twice previously, the subsidy was first slated to expire on February 28, 2010 and then on March 31, 2010.
The law is retroactive so if your business has terminated anyone between March 31 and yesterday, you will need to provide them with notice of this latest extension. As of now, the Department of Labor has not updated its Model Notices to reflect the extension; however, we anticipate that it will do so shortly. With the last extension, the DOL issued a Frequently Asked Questions section that was quite helpful. That too has yet to be updated. The Continuing Extension Act also extends unemployment benefits.
