When COBRA Is Triggered After FMLA
FMLA leave itself is not a COBRA qualifying event. An employee on FMLA leave retains their group health plan coverage (as described in the prior lesson). COBRA is triggered only when the employee's coverage is lost — which happens when the employee fails to return from FMLA leave at the end of the leave period.
| Scenario | COBRA Triggered? | When |
|---|---|---|
| Employee on FMLA leave (coverage maintained) | No | N/A |
| Employee returns from FMLA leave | No | N/A |
| Employee does not return from FMLA leave | Yes | Date FMLA leave ends and employee does not return |
| Employee's coverage terminated during FMLA (employer error) | Yes | Date coverage is terminated |
Tracking FMLA Leave for COBRA Purposes
Employers must track FMLA leave carefully to identify when an employee's FMLA entitlement is exhausted and they do not return. At that point, the employer must notify the plan administrator of the qualifying event (termination of employment) and the COBRA election notice must be sent within 14 days.
The FMLA/COBRA Trap
Watch Out
A common FMLA/COBRA trap: an employer terminates an employee's health coverage when they go on FMLA leave (incorrectly), then sends a COBRA election notice. The employee elects COBRA and pays premiums. Later, the employer discovers the termination was a FMLA violation. The employer must restore coverage retroactively — but the COBRA premiums paid by the employee must be refunded. This creates a significant administrative and financial mess. Maintain coverage during FMLA leave to avoid this trap.