COBRA Rights Violation: What You Need to Know When Your Employer Fails You

COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that gives you the right to continue your employer-sponsored health insurance for a limited time after you lose your job or have your hours cut. It sounds straightforward—but employers routinely violate COBRA rights, and many employees never realize they’ve been harmed.

If your employer failed to give you proper COBRA notice, didn’t allow you to elect continuation coverage, terminated your benefits early, or retaliated against you for trying to use your benefits, you may have a legal claim. Let’s break down what you need to know.

What Is COBRA?

When you work for a company with 20 or more employees, federal law requires your employer to let you keep your health insurance after you leave—even if it’s because you were fired or laid off. The law applies to:

• Voluntary resignations
• Involuntary terminations
• Reductions in work hours (if coverage would normally end)
• Leaves of absence

You’re typically allowed to continue coverage for 18 months (or longer in certain circumstances, like disability). The catch: you pay the full premium—both the employee and employer portions—plus a small administrative fee.

But here’s where employers go wrong.

Common COBRA Violations

No Notice or Late Notice: Your employer is legally required to give you written notice of your COBRA rights within 14 days of your termination or hour reduction. Fail to do that, and it’s a violation. Many employees never even knew they had the option.

Wrongfully Denied Coverage: Some employers refuse to provide COBRA at all, claim you don’t qualify, or make it unnecessarily difficult to elect coverage. If you meet the legal requirements, denial is unlawful.

Terminated Benefits Early: Your COBRA coverage should last for the full 18-month period (or whatever the law requires in your situation). If your employer cuts it off early without legal cause, that’s a violation.

Retaliation for Using Benefits: If you tried to use your health insurance, disability benefits, or workers’ compensation, and then your employer fired you or retaliated against you, that’s illegal—and it’s often tied to COBRA violations. Employers sometimes terminate coverage or refuse COBRA access to punish employees for claiming benefits.

Your Rights Under California Law

California has additional protections beyond federal COBRA. Under California’s Family Rights Act (CFRA) and other employment laws, your employer cannot:

• Fire or retaliate against you for exercising your right to health benefits
• Interfere with your ability to continue coverage
• Discriminate against you based on your use of health insurance

Violating these rights can expose your employer to damages for your unpaid premiums, attorney fees, and compensation for the harm caused by losing coverage when you needed it most.

What Can You Do?

If you believe your employer violated your COBRA rights, document everything:

• When you were terminated or had hours reduced
• When (or if) you received COBRA notice
• Any communications where your employer denied or interfered with your coverage
• Premiums you paid or coverage gaps you experienced
• Any discipline or termination that followed your attempt to use benefits

Then reach out. COBRA violations are serious, and employers who violate them often owe significant damages. You have a right to the health coverage you earned through your work, and we’re here to help you protect it.

Call us today for a free consultation: (949) 506-6825. We represent employees throughout Orange County on a contingency basis—if you don’t win, you don’t pay.