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A former Amazon employee has filed a lawsuit against the tech giant, claiming that the company may have violated federal laws by failing to inform workers of their health insurance rights under COBRA, and instead dispensed information apparently meant to dissuade workers from applying for COBRA coverage.
Amazon Employees Sue Over Alleged COBRA Violations
Plaintiff Rhiannon K. filed her Amazon lawsuit in June 2020, and is seeking to represent a class of other Amazon employees who experienced similar violations. According to her, Amazon sent her a notice regarding the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA is a program that allows employees to continue to receive the same coverage offered through their employer’s health insurance after they have left their job. According to federal law, employers are required to notify workers of their eligibility to apply for COBRA within a certain time period after their employment ends. These notifications are also legally required to contain certain information, including the date that the worker’s current insurance will end if they do not opt in to COBRA, instructions on how to enact coverage under COBRA, and an explanation of what that coverage will include.
However, according to Rhiannon, the notice she received from Amazon was incomplete and did not contain all of the legally required information. In addition to missing information, the notice also allegedly contained information meant to scare people away from applying for COBRA coverage. Rhiannon claims that the notice included a warning stating that submitting incomplete information on a COBRA application may result in civil or criminal penalties. Additionally, she claims that the notice also referenced potential $50 penalties from the IRS for the submission of inaccurate tax information. She claims that as this information is unrelated to COBRA, it was included in an attempt to intimidate workers.
Rhiannon claims that the notification was confusing and resulted in her being unable to decide whether to pursue coverage under COBRA. As a result of this confusion, she claims that she lost her health coverage and was required to pay out of pocket for medical expenses.
About COBRA Coverage
About COBRA CoverageCOBRA allows workers to keep their prior employer-sponsored health coverage while they are between jobs. Some employees whose hours have been reduced to the point where they no longer qualify for their employer’s health insurance plan may also be covered. COBRA coverage often allows workers and qualified dependents to keep their health insurance for between 18 and 36 months. However, COBRA is very expensive. On average, COBRA health insurance costs around $600 per month. In cases where it is important that a worker continue to see the same doctors and specialists, it may be the best option despite the price tag.
Workers who are eligible for COBRA coverage are required to be notified by their employer within a maximum of 44 days after they leave their job or lose their insurance coverage. The notice must be written in a way that makes it understandable by an average plan participant, and must include information on how to choose COBRA coverage and what will happen if they do not opt-in to coverage. Employers who send late or inaccurate COBRA notifications may be subject to fines and other penalties.
Amazon employees and other workers who have received inaccurate or incomplete COBRA notifications after losing their employer-sponsored insurance coverage may be eligible to speak with an experienced attorney about their legal options. Some victims may be able to join or file a class action lawsuit against their employer and pursue compensation for financial damages and medical expenses.
Rhiannon’s Amazon COBRA Lawsuit is Case No: 3:20-cv-02493-JFA, filed in the U.S. District Court for the District of South Carolina.
Join a Free COBRA Class Action Lawsuit Investigation
If you received a COBRA notice that did not fully disclose your rights and how to retain your health insurance following separation from your job, or you received no notice at all, you may be qualify to join this COBRA notice class action lawsuit investigation.
This article is not legal advice. It is presented
for informational purposes only.
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6 thoughts onAmazon Employees Lawsuit Claims Company Violated COBRA Insurance Laws
I was terminated after filing a workmans comp case, although Amazon stipulated that I was terminated for different reasons. Anyways, I was told about the option of Cobra Insurance, but then they never followed through and sent me the info on the Cobra Insurance…and consequently, I will soon be without medical insurance and I don’t know what I’m going to do.
I was also an amazon employee who got hurt and was never informed about Cobra until several months later when my disability ended and was terminated.
I was injured @Amazon and a week later I was terminated. Therefore, my benefits for my family and I where also completely terminated exactly 30 days later. Then all of a sudden I started receiving tons of mail from Amazon HR Dept, Workers Comp and then Cobra. But they happen to arrive all within two to three days, but with back dated dates. I was so stressed confused and most importantly unfairly and untrained L3 that was terminated my first few days of understanding my workers comp process.
Add me I work there
I was and still am a Amazon working
I was an amazon employee who was not informed about cobra and would like to join the class action suit.