COBRA notices are a cornerstone of employer-sponsored benefits compliance. When employees lose health coverage due to certain life events, COBRA ensures they have the opportunity to continue that coverage — but only if notices are issued correctly and on time. Employer COBRA notice requirements include strict notification guidelines that both employers and plan administrators must follow. Falling short can result in steep financial penalties, audits, or lawsuits.
Responsibility typically falls on the employer or a designated plan administrator, which makes understanding the timing and types of required COBRA notices essential.
What is COBRA and who is covered?
COBRA, the Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows employees and their qualified dependents to temporarily continue group health coverage after certain events that would otherwise result in a loss of coverage. COBRA typically covers group health plans provided by private-sector employers with at least 20 employees, along with plans sponsored by state and local governments.
Covered individuals include the employee, their spouse, and dependent children who were covered under the plan on the day before the qualifying event occurred.
What qualifies someone for COBRA?
Qualifying events that trigger COBRA
COBRA coverage becomes available when a qualifying event causes a loss of health coverage. These events differ depending on whether the individual is an employee, spouse, or dependent.
For employees:
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Voluntary or involuntary job loss (not due to gross misconduct)
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Reduction in work hours
For spouses and dependents:
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Divorce or legal separation
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Death of the covered employee
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Covered employee becomes eligible for Medicare
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Loss of dependent child status
What doesn’t qualify
Not every coverage loss entitles someone to COBRA continuation. Termination for gross misconduct or voluntarily dropping coverage without a qualifying event does not trigger COBRA eligibility. Additionally, individuals who were not enrolled in the health plan before the qualifying event are not eligible for COBRA coverage.
COBRA coverage duration
COBRA coverage typically lasts:
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18 months for job loss or reduction in hours
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36 months for qualifying events affecting dependents (e.g., divorce or death of the employee)
Coverage may end early if premiums are not paid on time. In these cases, the plan administrator must issue a Notice of Early Termination explaining the reason and effective date.
COBRA notice timeline and responsibilities
COBRA law requires strict adherence to notice deadlines. Employers and plan administrators share responsibility:
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Employers must notify the plan administrator within 30 days of an employee’s qualifying event.
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Plan administrators then have 14 days (or 44 days total from the qualifying event if the employer is also the administrator) to send the COBRA Election Notice to qualified beneficiaries.
Timely coordination is critical to avoid compliance issues.
Required COBRA notices and their deadlines
General (Initial) COBRA Notice
Deadline: Within 90 days of initial plan enrollment
Purpose: Informs employees and covered dependents of their COBRA rights. Most employers include this information in the plan’s welcome packet or Summary Plan Description (SPD).
COBRA Election Notice
Deadline: Within 14 days of the employer notifying the plan administrator of the qualifying event (or 44 days from the event if the employer and plan administrator are the same)
Purpose: Notifies eligible individuals of their right to elect COBRA coverage and includes election forms and instructions.
Notice of Unavailability
Deadline: Within 14 days of receiving a request for COBRA when the individual is not eligible
Purpose: Informs individuals that they are not eligible for COBRA and explains why.
Notice of Early Termination
Deadline: As soon as practicable after the decision to terminate COBRA early
Purpose: Communicates the reason COBRA coverage is ending early and the effective termination date.
What makes you non-compliant with COBRA?
Non-compliance can stem from:
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Not maintaining proper documentation
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Failing to provide required notices on time
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Inaccurate or incomplete notice content
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Failure to offer COBRA when a qualifying event occurs
The consequences can be severe — up to $110 per day per beneficiary for notice failures, IRS excise taxes, and potential lawsuits from affected individuals.
Summary of COBRA notice deadlines
Each required COBRA notice has a specific deadline based on when a qualifying event or related action occurs. The General (or Initial) COBRA Notice must be provided to employees and covered dependents within 90 days of enrolling in the group health plan.
When a qualifying event occurs, the employer must notify the plan administrator within 30 days. The COBRA Election Notice must then be sent within 14 days of that employer notification. If the employer also serves as the plan administrator, the total deadline is 44 days from the date of the qualifying event.
The plan administrator must issue a Notice of Unavailability within 14 days when someone requests COBRA coverage but isn’t eligible. If COBRA coverage ends early—such as due to nonpayment or eligibility for another group plan—the administrator should send a Notice of Early Termination as soon as reasonably possible, outlining the reason and the termination date.
Meeting employer COBRA notice requirements: Staying compliant and avoiding risk
Timely and accurate COBRA notifications are a legal requirement. Employers who fail to meet these obligations risk audits, penalties, and legal disputes. Understanding employer COBRA notice requirements—including the notices, deadlines, and shared responsibilities—helps protect both the organization and the rights of employees.
