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- @042 CHAP 05
-
- ┌─────────────────────────────────────────┐
- │VETERANS RE-EMPLOYMENT RIGHTS ACT OF 1994│
- └─────────────────────────────────────────┘
-
- New legislation that went into effect in October, 1994, the
- Uniformed Services Employment and Reemployment Rights Act
- of 1994, prohibits employment discrimination against any
- person who serves in or applies to serve in the uniformed
- military services. The new law also requires you, in most
- cases, to reemploy a person who leaves your employ to serve
- in the military, unless they are absent on account of such
- military service for more than five years. In many cases,
- you may not only be required to rehire such a person after
- his or her return from the military, but will be required
- to reinstate them at the level, pay status, and seniority
- they would have attained if they had remained in your em-
- ployment. You may also be responsible for having to offer
- job training or retraining to the returning reservist and
- to make reasonable efforts for two years to accommodate the
- returning former employee who has been disabled as a result
- of military service.
-
- In effect, this requires you, as an employer, to bear
- some of the costs of a person who is disabled while in the
- military. This new mandate is an unprecedented shift of
- responsibility for veterans' benefits from the federal
- government to civilian employers, and it may place an un
- bearable financial burden on some small employers in the
- future.
-
- Other provisions of this new law require the Department of
- Labor to provide military reservists with lawyers, or pay
- reasonable lawyers' fees on their behalf, when reservists
- take legal action against their former civilian employers
- to enforce their rights under this new legislation. In
- addition, an employer must continue a reservist's health
- insurance during deployments of less than 31 days and give
- the reservist the option to continue coverage at his or
- her own cost for up to 18 months.
-
- USERRA also imposes a number of requirements on employee
- retirement plans, such as continuing to accrue benefits or
- make contributions for employees who are away on military
- duty. For example, one key provision of USERRA states that
- a person reemployed under the new law "shall be treated as
- not having incurred a break in service with the employer...
- by reason of such person's period or periods of service in
- the uniformed services."
-
- Since a number of these new rules are in apparent conflict
- with existing tax laws and provisions of ERISA, it may be
- some time before Congress resolves the conflicts with
- regard to the rights of service personnel under their em-
- ployers' pension and profit sharing plans.
-