COBRA, the federal act that lets workers temporarily continue
drawing health insurance when they switch jobs, has been taken for
granted by businesses. But over the past year, the federal
government has changed important aspects of COBRA—changes
slipping under small firms' radar.
"Ninety percent of companies are not compliant with the new
COBRA regulations," says Eric Raymond, CEO of Corporate Synergies
Inc., a Mount Laurel, New Jersey, employee benefits consulting
firm. "It's impossible to stay on top of
changes."
Entrepreneurs can't afford not to pay attention. Employers
must now give employees a written notice explaining COBRA, which
only affects firms with more than 20 employees. These notices must
be sent within 90 days of an employee joining the health plan. Once
an individual becomes eligible for COBRA, the employer must send
him or her another written notice laying out COBRA rights.
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Still, entrepreneurs don't have to throw up their hands.
"Find an outside broker who monitors and does [COBRA]
compliance for you," says Raymond. Choose a broker who offers
an errors and omissions policy—if the broker makes an error,
the company can't be blamed.
Export Advice
Small exporters are one of the fastest-growing segments of
American entrepreneurs, but many smaller companies are still afraid
of operating overseas, where red tape, unfamiliar customs and other
problems can stretch an entrepreneur's resources. Indeed,
although small companies comprise more than 95 percent of all U.S.
firms, they account for less than 30 percent of America's total
exports, according to the U.S. Census Bureau.
Help is on the way. The Department of Commerce is reaching out
to smaller exporters with its new trade website, Export.gov, which
includes a monthly publication detailing export information on a
range of important markets. And now, the Department of Commerce has
linked up with FedEx to help smaller companies in a collaborative
effort to guide small and midsize businesses into foreign
markets.
Under this initiative, if a FedEx customer is looking for extra
skills and research on foreign markets, FedEx employees will refer
them to U.S. Commercial Service officers in the United States and
overseas.
These officers will then provide the entrepreneurs with a range
of detailed information on the foreign markets that seem most
appropriate, giving entrepreneurs the kind of specific information
usually only available to larger companies. "We're
combining forces," says FedEx's Jim McCluskey.
"They're getting both FedEx's support and U.S.
Commercial Service's knowledge."
33%
of U.S. workers don't meet the minimum writing requirements of
their jobs.
Statistic Source: College Board's
National Commission on Writing
The proportion of California workers 65 years or older
increased
2.9%
between 1992 and 2001.
Statistic Source: U.S. Census
Bureau
Joshua Kurlantzick is a writer in Washington, DC.