Court awards $300,000 in COBRA penalties

Penalties for COBRA notice violations can be substantial.

A federal court in Nebraska recently imposed penalties of over $300,000 plus attorneys fees. Delcastillo v. Odyssey Resource Management Inc., 320 F. Supp. 2d 889 (D. Neb. 6/11/2004). Here, the court found that the participant and his family suffered particularly severe consequences as a result of the lack of health care coverage.