COBRA
When does COBRA apply?
If you have 20 or more employees for more than 50% of your typical business days in the preceding calendar year, you must provide COBRA continuation for participants who experience a qualifying event in the current year. You must allow these persons to elect and continue COBRA through the end of their term (18, 29 or 36 months) regardless of whether you drop under 20 employees in the current calendar year, or later. However, if you drop under 20 employees for more that 50% of your typical business days in the current year, you are exempt from offering COBRA for qualifying events that occur in the upcoming calendar year.