COBRA Penalties

Noncompliance with COBRA can carry considerable penalties, including tax assessments.  ERISA and the Internal Revenue Code address failures to provide timely notification to qualified beneficiaries of their continuation coverage rights.  The U.S. Criminal Code can impose sanctions on knowing misstatements or concealment of facts related to documents required by Title I of ERISA, which includes COBRA. 

ERISA Penalties

Under ERISA, employers can be fined $110 a day for each qualified beneficiary for failing to comply with COBRA notice requirements...