The California Continuation Benefits Replacement Act of 1997 (Cal-COBRA) requires insurance carriers and HMOs to provide COBRA-like coverage for employees of smaller employers (two to 19 employees) not covered by COBRA. To be covered by Cal-COBRA, you must have employed two to 19 eligible employees on at least 50 percent of working days during the preceding calendar year. If not in business during any part of the preceding calendar year, you must have employed two to 19 eligible employees on at least 50 percent of working days during the preceding calendar quarter.
