|
In order to counter the rescission during the late 2000s, the United States Congress enacted the American Recovery and Reinvestment Act of 2009 (ARRA). President Barack Obama signed this act into law in February 2009. This is an economic stimulus package which intends to save existing jobs and create new ones. This act is also known as the Recovery Act or the Stimulus. By way of investments in health, education, infrastructure, and “green energy”, efforts have been made to boost the economy. Through this act, temporary relief programs have been created for those that have been hit by rescission. Consider a situation where one has applied for assistance under the ARRA and also under COBRA due to being constructively discharged. Due to the employer cancelling the eligibility for ARRA, assistance that was sought under the COBRA insurance has been affected. Can this be considered as legal?
An individual may receive 65% subsidy of healthcare contributions as per Section 3001(a)(3)(C) of the ARRA if the individual is “involuntarily and indefinitely separated from employment”. “Involuntary” termination is not defined under the federal law. Therefore, to ascertain the facts related to employment separation, the courts generally refer to the state law. As per the Consolidated Omnibus Budget Reconciliation Act (COBRA), continuation coverage may be cancelled due to payments not being made within time. One may present a case for “doctrine of mistake” under the contract law, which states that the employer is responsible for any mistake made in determining eligibility unless the employee is reasonably aware of the employer’s error. With regards to the situation mentioned above, once the premium payment that is made by the employee is accepted by the employer, the contract is deemed as enforceable. In the state of Nevada, can a claim be made if one resigns from the job and relocates due to a transfer received by the husband in his job?
Many states have adopted the Unemployment Modernization Act (component of the ARRA), which has model provisions that can be utilized by states to rewrite laws related to “trailing spouse”. Nevada has not implemented this law (as it is not mandatory) and the resignation will be termed as voluntary termination and one may not be able to avail the benefits. An employee has been terminated and is availing COBRA and ARRA benefits. Can this employee continue to avail the subsidies if he\she performs contract work?
The ARRA subsidy has established income limits in the event that a taxpayer’s adjusted gross income is more than $145,000.00 or $290,000.00 for joint filers, in a tax year when the premium assistance is received. Further, the premium amount reduction during the tax year needs to be repaid. Such amount is proportionately reduced for taxpayers with adjusted gross income between $125,000.00 and $145,000.00, or $250,000.00 and $290,000.00 for joint filers. While premium reduction may be permanently waived, it cannot be obtained later if the adjusted gross income falls below the limits. If foreign goods are sold to projects receiving ARRA funds, are there any restrictions on doing so?
As per ARRA, some circumstances restrict sale of foreign products to projects receiving ARRA funds. Under section 1605 if ARRA funds are used for construction, maintenance or repair of public buildings or public work, then materials and goods that have been produced in the US only should be used. This is in reference to manufactured goods that are used directly in construction and does include laboratory or scientific equipment, desks, chairs, etc. Public work is defined as works carried out under the authority, or with funds of, a federal agency. Such work includes streets, subways, airports, railways, dams, bridges, etc., and does not includes works that are not carried out to specifically service the interest of general public. Will one be disqualified from availing the benefits under COBRA and the ARRA if there is “gross misconduct”?
“Gross Misconduct” disqualifies one from benefits that can be availed even if the misconduct takes place away from the workplace. Any act that is a deliberate indifference to the employer’s interest where it can be classified as intentional, deliberate, reckless and wanton is generally termed as “gross misconduct”. An employee instantly qualifies to avail benefits under COBRA in the event of a termination. However, if the employer feels that there was a “gross misconduct” on the part of the employee and wishes to stop the COBRA continuation rights, then the employer needs to provide proof to this regard and indicate this as the main reason for termination. However, the employee should be intimated and be given the chance to contest the decision. To assist people whose lives were affected by the recession and to help create new jobs, in 2009 the ARRA was enacted. To know more, you can always ask an employment lawyer.
Related Articles -
arra, american recovery and reinvestment act, arra funding, arra reporting, what is arra, arra compliance, arra cobra, arra stimulus, arra grants, arr,
|
