What Employers Must Provide To Departing Employees

Whether you are terminating an employee or an employee resigns, federal and state laws require the departing employee receive:

1. A COBRA notice and election form prior to termination of the employee’s benefits (if the employer has 20 or more employees in California and the departing employee participates in the employer’s group health plan).
2. A notice of Cal-COBRA continuation rights. Cal-COBRA must be offered to terminated employees of small employers (2-19 employees), and terminated employees covered under federal COBRA when their 18 months of federal COBRA coverage expires.
3. A “For Your Benefit” (DE 2320) pamphlet from the EDD, which describes the unemployment benefits available to all discharged employees. The pamphlet must be provided no later than the effective date of the termination.
4. An Unemployment Insurance Code section 1089 written notice informing the discharged employee of a change in the relationship (i.e., it has been terminated).
5. A Health Insurance Premium Payment (HIPP) notice (DHCS 9061)
6. for employees covered under the program (if you employ 20 or more employees).
7. A notice pursuant to California Labor Code Section 2808(b) of all continuation, disability extension, and conversion coverage options under any employer-sponsored coverage for which the employee may remain eligible after employment terminates.

There may be additional documents that an employer will need to provide depending on the employer’s industry, so it is always wise to contact your legal counsel if you have any questions when seperating from an employee.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.