A company terminated an employee and sent him notification of his COBRA rights via certified mail with return receipt requested. The former employee was out of the house on two occasions when the postal service attempted to deliver the letter. Tho postman left a note that he could pick it up at the post office. However, when he went to the post office, the letter could not be found. The letter was later found and sent back to the employer marked "undelivered." The employer made no further attempt to contact the former employee. The employee incurred medical expenses for which he wanted continuation coverage. The employer denied continuation coverage because he did not elect it within the required 60 days. The former employee sued.
What is the issue in this case? What should the court decide and why?
(Degruise v. Sprint Corp., 2002 U.S. App. LEXIS 1116)
The underlying issue in this case is whether or not the company that terminated the employee exercised good faith in its attempts at adhering to its legal obligation to notify the terminated employee of his COBRA rights in a reasonably effective manner. The secondary issue in this case is to whether or not the former employee was given the opportunity to respond to the ...