The Consolidated Omnibus Budget Reconciliation Act (COBRA) is applicable to employers with how many employees?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows employees to continue their group health insurance coverage for a limited period after experiencing a qualifying event, such as job loss or reduction in work hours. COBRA applies to employers who have 20 or more employees. This means that those businesses fall under the definition and are required to offer continued health coverage to eligible employees and their dependents under specific circumstances.

Employers with fewer than 20 employees are generally not subject to COBRA regulations and thus are not required to provide this extended coverage option. Consequently, the correct answer indicates the threshold of 20 employees, aligning with COBRA's stipulations, which is vital for understanding employer responsibilities regarding health coverage after employment changes.