In July of 2020, Governor Inslee extended Proclamation 20-46, which creates employment protections for workers at high risk for severe illness due to COVID-19. The proclamation applies to:
- Employees who are 65 and older;
- Employees who fall under the “at increased risk” category per CDC guidelines; or
- Employees who fall under the “might be at increased risk” category per CDC guidelines, but only if, based on the employee’s medical circumstances and workplace conditions, the employee is, in fact, at increased risk for suffering
severe illness from COVID-19.
In addition to requiring employers to work with these employees to create alternative work arrangements, the proclamation prohibits employers from “failing to fully maintain all employer-related health insurance benefits until the employee is deemed
eligible to return to work.”
In early April, Governor Inslee updated the proclamation and related
frequently asked questions.
The updates, effective April 23, 2021, clarify the portion of the proclamation relating to the maintenance of insurance benefits once a high-risk employee is in unpaid status. The update allows employers to terminate benefits and shift the employee to
COBRA at the end of the month in which they shift to unpaid status provided they give the employee 14 days notice of this change. In most cases, the termination reason will be “Reduction in hours.”
Shifting an employee to COBRA when they are no longer in paid status is consistent with AWC underwriting rules.
High-risk employees who are currently in unpaid status:
Employers covering an employee in compliance with the original proclamation, should provide notice to the employee by May 17, 2021 that their active benefits will end effective
May 30 and they will be COBRA eligible effective June 1. For a termination date in the SIMON system, use the date the notice was provided. This will trigger the COBRA notification packet.
High-risk employees drawing paid time:
It is also important that employers with a high-risk employee approaching the exhaustion of their vacation/sick leave, provide 14 days notice of the shift to COBRA.
For anyone who will exhaust their leave in May, provide a notice by May 17, 2021, that their active benefits end effective May 30 and they will be COBRA eligible effective June 1.
Going forward, employers should review their list of high-risk employees the first of each month. Provide active coverage termination notice the first week of the month for all employees who will exhaust their leave during that month. For example, provide the notice the first week of June to anyone exhausting their leave during June (June 1 – June 30). COBRA would then be effective July 1, 2021.
For a termination date in the SIMON system, use the date their leave exhausts.
Employers that have questions about the proclamation and how to comply should seek the advice of legal counsel.