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Employers that violate COBRA requirements could receive penalties under the Internal Revenue Code, Department of Labor or the Public Health Service Act (if the employer is a state or local government).
The Department of Labor can audit an employer and levy a maximum penalty of $110 per day for each day the employer is found to be in violation of delivering COBRA notices in a timely manner to employees and or qualified beneficiaries.
The IRS can also impose an excise tax of $110 per day in addition to the Department of Labor's penalties if it finds the employer out of compliance in its COBRA administration.
These penalties are separate from any other judgments or damages that a court may award a plaintiff qualified beneficiary who brings a lawsuit against an employer for failing to provide the coverage to which he or she was entitled.
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