Final answer:
An employee can typically retain COBRA coverage for 18 months, with extensions up to 36 months for certain events such as death or divorce.
Step-by-step explanation:
The length of time a covered employee can continue coverage under COBRA (Consolidated Omnibus Budget Reconciliation Act) is generally either 18 or 36 months, depending on the qualifying event. For instance, if an employee is terminated for reasons other than gross misconduct, or if the employee's hours are reduced, COBRA coverage can last up to 18 months. In cases of an employee's death, divorce, or legal separation, or when a child no longer qualifies as a dependent, the duration of COBRA coverage can be extended to 36 months for the affected family members.