Timothy Kolman & Associates
Employment
Law News:
Copyright TKA 2008
Timothy Kolman & Associates
Since 1991
THE UNEMPLOYED GET A LIFT
The unemployed got a lift from the American Recovery and Reinvestment Act (ARRA) which increased the benefits to which the unemployed are entitled. The ARRA gives new temporary federal additional compensation of up to $25.00 per week beginning February 22, 2009 and also permits states to extend the number of weeks for benefits from 13 to 20.There are also significant changes to COBRA benefits. One is a COBRA subsidy, which is available to employees previously covered by their employer’s health insurance and who have been terminated from employment through no fault of their own on or after September 1, 2008. Now, those eligible individuals will only have to pay 35% of their COBRA premium under their prior employer’s health plan instead of the full amount.Also, there is a second special election period which enables employees another opportunity to select COBRA, when they couldn’t elect it the first time because of cost.Older workers will also benefit under the Senior Community Service Employment Program which earmarks an additional $120,000,000.00 to help create 3.5 million jobs for people over 55 who are currently unemployed.Finally, the Act gives a tax break for unemployed workers, exempting them from the first $2,400.00 of their 2009 unemployment benefits. Prior to this, the entire amount received by the employee was eligible for taxation.Watch this space for further legal developments in employment law.