FMLA, COBRA, HIPAA, and ERISA

Discuss, in 2-3 pages, FMLA, COBRA, HIPAA, and ERISA, including penalties and cases against companies for violating the acts.

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Introduction

It is very important for HR professionals, and all members of management, to be familiar with the laws and acts that govern leaves of absences, benefits, medical information and retirement and health plans. The major ones to understand include:

  • Family and Medical Leave Act (FMLA): The 1993 Family and Medical Leave Act (FMLA) applies to all employers having 50 or more employees and entitles all eligible employees to receive unpaid leave up to 12 weeks per year for specified family or medical reasons.
  • Consolidated Omnibus Budget Reconciliation Act (COBRA): In 1985, the Congress enacted Consolidated Omnibus Budget Reconciliation Act (COBRA) to provide current and former employees and their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to qualifying events (for example, layoffs). All employers with 20 or more employees must comply with COBRA.
  • Health Insurance Portability and Accountability Act (HIPAA): The 1996 Health Insurance Portability and Accountability Act (HIPAA) was designed to (1) lessen an employer’s ability to deny coverage for a preexisting condition and (2) prohibit discrimination on the basis of health-related status.
  • Employment Retirement Income Security Act (ERISA): The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Instructions

Four acts—FMLA, COBRA, HIPAA, and ERISA—passed by the Congress greatly define the arena of benefits.

For this assessment, in 2–3 pages:

  • Define each act—FMLA, COBRA, HIPAA, and ERISA—briefly.
  • Cite one current issue that employers are, or should be, concerned with for each act.
  • Describe the violations and penalties that employers can face for violating these acts.
  • Describe, for each law, an example of an actual legal case involving an organization that has violated this law.

FMLA, COBRA, HIPAA, and ERISA

Define FMLA, COBRA, HIPAA, and ERISA and describe a current issue associated with each.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

  • Competency 5: Analyze the effects of laws and regulatory agencies on compensation and benefits strategies.
    • Explain the FMLA in relation to employer issues of concern.
    • Explain COBRA in relation to employer issues of concern.
    • Explain HIPAA in relation to employer issues of concern.
    • Explain ERISA in relation to employer issues of concern.

Four acts—FMLA, COBRA, HIPAA, and ERISA—passed by Congress greatly define the arena of benefits. For this assessment, complete the following:

  • Briefly define each of the four acts.
  • Cite one current issue that employers should be or are concerned with for each act. In defining your current issues:
    • Describe why each is an issue.
    • Include an example of an organization that has violated the act.
    • Describe the violation and the penalties that were imposed.

You may reference textbooks, your current work environment, an interview with a colleague, a head of human resources, an article from a popular business publication, or related information from the Capella library. Refer to the course library guide listed in the Resources for relevant databases and search strategies for conducting research on regulation of benefits. You may also find the Four Laws that Govern Benefits Programs multimedia piece linked in the Resources to be useful as you complete your assessment. Be sure to use proper APA style in citing and referencing your sources.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

  • Competency 5: Analyze the effects of laws and regulatory agencies on compensation and benefits strategies.
    • Explain the FMLA in relation to employer issues of concern.
    • Explain COBRA in relation to employer issues of concern.
    • Explain HIPAA in relation to employer issues of concern.
    • Explain ERISA in relation to employer issues of concern.
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