Hunton Employment & Labor Perspectives

The government shutdown may have ended six weeks ago, but its impact may be felt for months to come.  The Office of Management and Budget recently released a report entitled “Impacts and Costs of the October 2013 Federal Government Shutdown,” which details the costs of the government shutdown and the impact it had on government workers, which in turn impacts the private sector workplace as well.

The American Recovery and Reinvestment Act of 2009 (ARRA), which provides premium reductions for health benefits under COBRA, was recently amended by the Department of Defense Appropriations Act, 2010 (2010 DOD Act).  Under this new legislation, those involuntarily terminated through February 28, 2010, a change from the prior cut-off of December 31, 2009, are entitled to COBRA continuation assistance.  Furthermore, the legislation extended the length of that assistance to 15 months from 9 months.