---
title: "COBRA Notice Requirements Federal Law | COBRA Statutory Penalties"
description: "Avoid $110 per day COBRA penalties and million-dollar settlements. Discover why technical failures in COBRA notices, like missing deadlines or contradictory payment dates, lead to litigation. Ensure your health coverage notices meet federal law."
url: "https://wimlaw.com/publications/newsletters/cobra-requirements-federal-penalties"
date: "2026-06-03T00:59:51+00:00"
language: "en-US"
---

#  Employers Should Be Careful in the Wording of Their Cobra Notices

Written on December 18, 2025.

*Tag(s):* [Human Resources (HR)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=66:human-resources), [Employee Handbook](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=68:employee-handbook), [Administrative Law](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=198:administrative-law), [December 2025 Newsletter](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=203:december-2025-newsletter)

Employers should be aware that the federal COBRA law requires employers with 20 or more employees to allow workers to temporarily continue their health coverage after they have been terminated or experienced a qualifying event. The statute requires employers to notify workers of their COBRA rights, dictates what information must be included, and when the notices must be sent. Employers that violate these requirements may face penalties of up to $110 per day for each affected individual. Numerous cases have been brought against employers for technical failures in these notices, resulting in large settlements. Target settled such a case for $1.6 million, and Wells Fargo for $1 million, for example.

As an example, a court allowed the case to proceed on the basis that the plaintiff had plausibly alleged the company’s COBRA notices improperly omitted the specific deadline for electing coverage and included contradictory statements about when payment was due. Marrow v. E.R. Carpenter Co., 2025 BL 291011 (M.D. Fla., 8/18/25). The court did indicate in declining to certify the case as a class action, that the facts cast doubt on the worker’s claim she suffered injuries stemming from the company’s faulty COBRA notices.

This article is part of our December 2025 Newsletter.

[View the newsletter online](https://wimlaw.com/tags/december-2025-newsletter)[
  ](https://wimlaw.com/contact)[Download the newsletter as a PDF](https://wimlaw.com/images/2025/12/2025-12-newsletter.pdf)

- [](https://x.com/intent/post?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Fcobra-requirements-federal-penalties.md&text=)
- [](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Fcobra-requirements-federal-penalties.md)
- [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Fcobra-requirements-federal-penalties.md)
- [](mailto:?subject=Employers%20Should%20Be%20Careful%20in%20the%20Wording%20of%20Their%20Cobra%20Notices)

##  Related Content

[ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

###  [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[ ![danger sign, skull](https://wimlaw.com/media/yootheme/cache/01/mikael-seegen-jX6WXNkvsPs-unsplash-01c1ebef.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

###  [The Dangers of Employers Using AI Research Tools as to Discovery Requests from Plaintiffs](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

[ ![ai visualization](https://wimlaw.com/media/yootheme/cache/45/milad-fakurian-5yWtM3M3JKM-unsplash-45306e6d.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

###  [Suggestions on Use of AI](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

##  Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

##  Recent Content

 [ Employment Law Newsletter: A Monthly Report On Labor Law Issues ](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

 [ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)###  [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

A January 20, 2026, class action filed against Eightfold AI, Inc. in California is sending shockwaves through the employer and AI community…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

 [ ![danger sign, skull](https://wimlaw.com/media/yootheme/cache/01/mikael-seegen-jX6WXNkvsPs-unsplash-01c1ebef.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)###  [The Dangers of Employers Using AI Research Tools as to Discovery Requests from Plaintiffs](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

A second “bombshell” affecting HR pertaining to AI is a federal court ruling in New York, that a defendant’s use of AI in researching and p…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

 [ ![CHAT GPT](https://wimlaw.com/media/yootheme/cache/64/emiliano-vittoriosi-fvxNerA8uk0-unsplash-64a16be4.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)###  [Two Subsequent Cases Protect Defendant’s Use of AI as Subject to Work-product Protection](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

Soon after the deciding of the above-discussed case on February 17, 2026, in U.S. v. Heppner, a criminal case in the District Court for the…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)

 [ ![avoid, wave away](https://wimlaw.com/media/yootheme/cache/6f/priscilla-du-preez-NQTphr4Pr60-unsplash-6fb4df83.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)###  [Is There Anything an Employer Can Do to Avoid Waiving Privileges in Using AI Research Tools?](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

There are no easy answers to the above question, but some general observations will nevertheless be made. First, the New York district cou…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)

 [ ![ai visualization](https://wimlaw.com/media/yootheme/cache/45/milad-fakurian-5yWtM3M3JKM-unsplash-45306e6d.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)###  [Suggestions on Use of AI](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

Perhaps the starting point is to look at the type of AI platforms generally available. At a recent conference about AI use for HR, speaker…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

 [ ![june 2026 legal immigration webinar promo graphic](https://wimlaw.com/media/yootheme/cache/45/june-2026-webinar-immigration-453d45bc.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)###  [Worksite Enforcement and TPS and Parole Status Update](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)

[Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221)

The webinar will cover how to deal with a worksite enforcement action and various types of immigration enforcement activities. The webinar…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)

### Additional Legal Resources

[### Newsletter

Explore

 ](https://wimlaw.com/publications/newsletters)

[### Books

Explore

 ](https://wimlaw.com/publications/books)

[### Alerts

Explore

 ](https://wimlaw.com/alerts)

[### Articles

Explore

 ](https://wimlaw.com/articles)

[### Audits

Explore

 ](https://wimlaw.com/audits)

[### Events

Explore

 ](https://wimlaw.com/events)

## Schema

```json
{ "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://wimlaw.com" }, { "@type": "ListItem", "position": 2, "name": "Publications", "item": "https://wimlaw.com/publications" }, { "@type": "ListItem", "position": 3, "name": "Newsletters", "item": "https://wimlaw.com/publications/newsletters" }, { "@type": "ListItem", "position": 4, "name": "Employers Should Be Careful in the Wording of Their Cobra Notices", "item": "https://wimlaw.com/publications/newsletters/cobra-requirements-federal-penalties" } ] }
```