Society For Human Resource Management (SHRM) Certified Professional Practice Exam

Under what type of legislation can Ryan sue his employer for not having a healthcare plan?

1. ERISA

2. EEOC

3. COBRA

4. None of the above

The correct answer is: COBRA

The correct choice is based on the specifics of the Consolidated Omnibus Budget Reconciliation Act (COBRA). This legislation is designed to ensure that employees and their families can maintain their health insurance coverage after job loss, reduction in hours, or other qualifying events. Under COBRA, employers with 20 or more employees must offer continued health insurance coverage to eligible employees, which Ryan would be able to sue for if he was entitled to benefits under a healthcare plan that was not provided by his employer. Understanding the context of other options helps clarify this answer. The Employee Retirement Income Security Act (ERISA) primarily establishes standards for pension and health plans in the private industry, thus federalizing the regulation of employee benefit plans. The Equal Employment Opportunity Commission (EEOC) deals with workplace discrimination laws rather than healthcare plan requirements. Since both these acts do not specifically cover the absence of healthcare plans in the context Ryan is inquiring about, COBRA stands out as the most applicable legislation for Ryan's situation.