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Guide to Employment Law. Currently, there is no federal law mandating employers to provide employees with health insurance coverage, and many states do not require employers to provide it or any other health coverage.
Terminated employees have the right to health insurance coverage after separation from their employer. The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986, grants terminated employees and their families the right to continued healthcare coverage for a limited period.ther states have stricter laws; for example, in California, the law requires the employer to pay the employee immediately if the employee was fired or if the employee quit after giving at least 72 hours notice. If the employee failed to give notice, the employer has 72 hours to issue a final paycheck.