The Value Builder

Spring 2003



USERRA Spells Out Employers’ Duties to Employees in the Military

 

With the ongoing war on terrorism and the prospect of military action in Iraq, contractors all over the country have faced losing employees to military service. If one of your workers trades in a hardhat for a helmet, what are your obligations as an employer?

The Uniformed Services Employment and Reemploy-ment Rights Act (USERRA) protects the rights of employees who leave their jobs to serve in the armed forces, the reserves, the Coast Guard, the Public Health Service, or the National Guard. USERRA includes protections concerning re-employment, health and welfare benefits, compensation, retirement plans, and discrimination.

In most cases, USERRA applies to all employers, regardless of size, and protects full- and part-time employees alike.

Under USERRA, employees are entitled to re-employment upon their return from service, provided:

  • The employee gave advance notice that he or she was leaving for military service
  • The period of service does not exceed five years (in most cases)
  • The employee is released from service under honorable circumstances
  • The employee asks for re-employment in a timely manner


Employers not only must re-employ the returning worker, they also must do so at the level and rate of pay the employee would have achieved had his or her employment not been interrupted by military service.

Same Pay Scale
Employers also must extend COBRA-like health plan options to employees on military duty. In addition, USERRA requires that employers treat employees returning from military duty as if no break in service had occurred for retirement and profit-sharing plan purposes.

For example, if an employee was not vested before leaving for military service, but would have vested while in the service, the employer must treat that employee as being vested immediately upon returning to work.

USERRA also prohibits employers from discriminating against employees or prospective employees on the basis of their desire or obligation to serve.

This is just a brief overview of USERRRA. For further information, contractors can visit Employer Support of the Guard and Reserve Web site at www.esgr.org. This group offers information, counseling, and informal mediation on compliance issues regarding USERRA.

 

Perisho Tombor Loomis & Ramirez
901 Campisi Way, Suite 250
Campbell, CA 95008
408-558-0500
info@ptlr.com

 

 

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.

© 2003