When employees experience a loss of health coverage, COBRA gives them the opportunity to continue their group benefits for a limited time — typically at their own expense. But for employers, COBRA isn’t just a courtesy — it’s a legal obligation.
Employers are responsible for ensuring that certain COBRA notices are delivered on time and contain the required information. Failure to comply can result in steep penalties from the Department of Labor (DOL) and the IRS, as well as potential lawsuits and medical claim liability.
Timely and accurate COBRA notice delivery is one of the most important compliance requirements for employers offering group health plans. This guide will break down the two most critical COBRA notices: the Initial (or General) Notice and the Election Notice.
What are COBRA notices?
Under federal law, COBRA notices serve to inform employees and their dependents of their rights to continue health coverage following specific qualifying events. There are several types of COBRA-required notices, including:
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Initial (general) notice — informs new plan participants of their COBRA rights
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Election notice — provided after a qualifying event, allowing participants to elect COBRA coverage
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Unavailability notice — issued when a person is not eligible for COBRA
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Early termination notice — sent when COBRA coverage ends before the maximum coverage period
This guide will focus exclusively on the initial notice and the election notice, as they are the most common and critical for employer compliance.
The initial COBRA notice (general notice)
Purpose and timing
The initial COBRA notice is designed to educate employees and their covered dependents about their COBRA continuation rights upon enrolling in a group health plan. It must be provided within 90 days of plan enrollment and applies to every covered employee and their spouse or dependent children.
Who sends the initial notice?
The responsibility typically falls on the employer or their third-party COBRA administrator. This notice can be delivered as a separate communication or included in the Summary Plan Description (SPD), as long as it meets the content and timing requirements.
What the initial notice must include
To be compliant, the initial COBRA notice must outline:
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The general COBRA rights and qualifying events
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Duration of COBRA coverage (e.g., 18 or 36 months depending on the event)
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Cost and how payments should be made
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Contact information for the plan administrator
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A reference or link to the Department of Labor’s model notice
The COBRA election notice
Purpose and timing
The election notice is sent after a qualifying event such as job loss, reduction in work hours, divorce, or a dependent aging out of the plan. This notice informs affected individuals of their right to elect COBRA continuation coverage. Timing depends on who is responsible for administration:
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14 days if the plan administrator is notified by the employer
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44 days if the employer is also the plan administrator
Once the election notice is delivered, qualified beneficiaries have 60 days to decide whether to enroll in COBRA coverage.
Who sends the election notice?
The election notice must be sent by the employer or their designated COBRA administrator, either by mail or through a secure digital delivery method.
What the election notice must include
This notice must provide detailed and specific information, including:
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Name and contact info for the COBRA plan administrator
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Monthly premium cost and payment deadlines
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Enrollment instructions, including whether election is manual or online
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Start and end date of COBRA coverage
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Explanation of rights and obligations during the COBRA period
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A link or reference to the DOL’s model election notice
Common mistakes and compliance risks
Timing errors
Many compliance issues stem from missed deadlines — either failing to send the initial notice within 90 days of enrollment or missing the 14/44-day window after a qualifying event. Employers may also overlook employee-reported events like divorce or dependent status changes.
Incomplete or incorrect notices
Another common risk is sending notices that are missing key elements — such as COBRA costs, payment schedules, or coverage duration. Using outdated templates that haven’t been reviewed for legal compliance is also a frequent mistake.
Penalties for non-compliance
COBRA non-compliance can result in significant financial consequences:
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DOL penalties: Up to $110 per day per qualified beneficiary
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IRS excise tax: $100 per day per individual, $200 per day per family
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Legal risks: Beneficiaries can sue for damages, and employers may be liable for unpaid medical claims
Best practices for COBRA notice delivery
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Use the DOL model notices as a starting point and customize as needed
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Keep detailed records of delivery dates and send notices via certified mail or with digital delivery logs
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Consider outsourcing COBRA responsibilities to a third-party administrator (TPA) to streamline tasks and reduce risk
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Audit COBRA procedures regularly to ensure compliance and accuracy
Final takeaways
Both the initial COBRA notice and election notice are legal requirements that carry tight deadlines and detailed content rules. Failure to deliver these notices properly can expose employers to substantial penalties and litigation.
To stay compliant, employers should prioritize clear documentation, track delivery, and leverage trusted administrative support. A proactive approach to COBRA compliance isn’t just smart — it’s essential.
