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Situational Judgment // Total Rewards
Under COBRA, what is an employer's compliance obligation regarding the continuation of health coverage for a covered spouse when an employee is involuntarily terminated for standard poor performance and insubordination?
a.Denying the continuation notice because the termination was documented as being for cause.
b.Offering continuation coverage to the primary employee but requiring a separate qualifying event for dependents.
c.Providing the spouse with a COBRA election notice, as the termination does not meet the gross misconduct threshold.
d.Providing an abbreviated 14-day election window due to the involuntary nature of the separation.
Instructor's Notes

Only gross misconduct allows an employer to deny COBRA coverage.

Termination for poor performance is not gross misconduct, and only gross misconduct allows an employer to deny COBRA coverage.

A standard firing automatically triggers COBRA for the employee and covered spouse.

The spouse gets independent election rights without needing a separate qualifying event.

The election window is always 60 days, not 14.

Denying COBRA notices for standard terminations triggers ERISA penalties of up to $110 per day and severe IRS excise taxes.

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Employee & Labor Relations //Application
An employee reports that their supervisor is making offensive jokes about their religion. What is the first thing HR should do?
Instructor's Notes

Document the complaint, implement interim measures to separate the employee from the supervisor, and immediately launch a formal investigation.

You must immediately separate the employee from the harm while launching a formal investigation. Title VII requires employers to take prompt corrective action to stop harassment. Leaving the employee under the supervisor's control during the inquiry exposes the company to liability. Trying to resolve religious harassment informally or delaying documentation fails this legal duty. Investigate immediately, but protect first - interim measures are your shield against vicarious liability.

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