Legal Forum
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Posted: 2001-08-22 10:47  
We recently terminated several employees for theft of company property - legally, do we have to offer them COBRA??
nork2
Joined: Sep 13, 2001 Posts: 1037
Posted: 2001-08-22 13:22  
The COBRA legislation actually states that COBRA must be offered to terminated employees except in those instances of "gross misconduct".
I would consider theft (depending on $$ value of goods stolen) to be gross misconduct. Most rational people would. The question is whether or not the case would be tried in front of a jury made up of rational people.
If you've made a police report and the police are investigating or have arrested the employees, it might support the contention of "gross misconduct". A conviction would be better yet.
EpsteinBecker&Green,P.C.
Joined: Sep 13, 2001 Posts: 8461
Posted: 2001-08-23 10:33  
Carl correctly states the "gross misconduct" standard. If, in fact, the (former) employees stole company property, you should be on pretty solid ground to deny them COBRA. (If they didn't, you may have problems beyond COBRA.)
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