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On May 16, 2004, the Department
of Labor approved new regulations regarding the Consolidated Omnibus
Budget & Reconciliation Act of 1985 (“COBRA”). These
new regulations apply to plan years beginning on or after November
26, 2004. (For calendar year plans the effective date is January
1, 2005). The most significant modifications to the regulations
are set forth below.
Under the new regulations, employers are required to issue an initial
COBRA notice to employees and their qualified beneficiaries within
90 days of the date the employee becomes covered by the plan. The
initial notice can be supplied to the employee through the Summary
Plan Description (SPD). But, the employer must also issue a separate
notice to the other qualified beneficiaries.
In addition, the new regulations clarify the plan’s obligation
to establish reasonable procedures where an employee is required
to notify the plan administrator of qualifying events, second qualifying
events or the beginning or end of a disability. These procedures
should be specified in the SPD and include identification of the
contact person to whom notice must be given, means by which notice
must be given; time limits for notice, and information needed to
provide continuation coverage.
Likewise, employees must provide notice of a disability within 60
days. These 60 days begin to run either after the SSA makes a final
determination; the date of the qualifying event; date of loss of
coverage; or when the beneficiary is informed of his duty to provide
notice, whichever event occurs latest.
If COBRA is unavailable or denied, employers must inform the employee
within 14 days of receiving notice of a qualifying event, second
qualifying event or disability determination. Finally, if coverage
will conclude prior to the end of the maximum period of continuation
coverage, the employer must notify the employee as soon as practicable.
Quiñones
González v. Asoc. Cond. Playa Azul II, 2004 T.S.P.R. 58
In this case, the Supreme Court of Puerto Rico had to resolve the
following issue: Whether a union employee can bypass the mandatory
arbitration clause in a collective bargaining agreement and claim
directly to the courts of law that he has been subject to a discriminatory
discharge based on age. The Court held that those employees belonging
to a union that are subject to discrimination, will be able to claim
directly to a court of law, without having to exhaust any arbitral
remedies set forth in the collective bargaining agreement. The Court
went on to say that the employee has two forums from which to select:
the arbitral forum and the court of law.
Rivera Torres v. Pan Pepín,
2004 T.S.P.R 59
In this case, Pan Pepín terminated an employee after an inspector
found out that the employee failed to remove bread that had expired
thirteen days ago. This conduct was described as severe in the Employee
Manual. The employee questioned the dismissal, and the Supreme Court
held that although the conduct had been labeled “severe”
in the Manual, the dismissal was without just cause. The employee’s
is years of service along with his record, were factors that had
to be considered in the decision to terminate him. Thus, the Court
held that although there are occasions in which dismissal for the
first fault is with just cause, in this case it had been unjust
as the company should have considered other factors.
Cintrón
Díaz v. The Ritz Carlton, 2004 T.S.P.R. 82
This case had a sole issue: Whether Law No. 69 of July 6, 1985,
establishes sanctions against the employer for retaliating against
employees who have complained about sex discrimination in internal
forums within the company. The Supreme Court determined that Law
69 did in fact protect employees from any retaliatory actions an
employer can take after the employee has filed a claim in an internal
forum of the Company. The Court held that Law 69’s coverage
was greater than the Anti-Retaliatory legislation contained in Law.
No. 115 of December 20, 1991.
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