Consolidated Omnibus Budget Reconciliation Act
- (COBRA)A federal law that requires employers to offer employees-and their spouses and dependents-continuing insurance coverage if their work hours are cut or they lose their jobs for any reason other than gross misconduct. The act also states that an ex-spouse and children are eligible to receive group-rate health insurance provided by the other ex-spouse's employer for three years after a divorce. However, the employer is not responsible for paying the insurance premiums.
Business law dictionary. 2015.
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