| Highlights: |
The tragic events of September 11th raise
many issues for our workforce, including human resource
and benefits issues. The mobilization of military reservists
also raises health care, pension and employment issues.
This memo provides information on the Uniformed Services
Employment and Reemployment Rights Act (USERRA), which
governs the health care and pension benefits of employees
on military leave. Note: USERRA applies to all employees
of the University of Virginia. |

IDENTIFICATION OF FACULTY AND STAFF WHO ARE
MEMBERS OF THE ARMED FORCES RESERVE OR NATIONAL GUARD
Attached is a form to identify University faculty or staff who are members of
the Armed Forces Reserve or National Guard and eligible to
be called to active duty. Please canvas your organizational
units and send the completed form to your respective Vice President by October 10th. Once collected
the information should be sent to University Human Resources.
Questions should be directed to Gary Helmuth, Special Assistant
to the Chief Human Resource Officer at 924-4450 or gdh5u@virginia.edu.
USERRA
The Department of Defense has been authorized to call
up to 50,000 military reservists. The Uniformed Services Employment
and Reemployment Rights Act of 1994 (USERRA) governs the reemployment
and benefit rights of employees returning from military leave.
Generally, USERRA:
- Prohibits employment discrimination against employees
who take leave for military service and guarantees reemployment
to those returning from military leave.
- Provides up to 18 months of continuing health care coverage
for employees who are called away for military duty and
for their family members.
- Allows employees to make up "missed" contributions
to defined contribution plans, and requires that employers
make up "missed" matching contributions.
Reemployment Rights for Employees Returning from Military
Leave
In general, an employee returning from military leave
is guaranteed reemployment and other rights as long as he
or she complies with certain notification and other requirements.
Employees are protected by USERRA if:
- The employee (or an appropriate officer in the uniformed
service in which the employee's military service is performed)
gave advance written or verbal notice of his or her military
duty,
- The cumulative length of all periods of military service
with the employer do not exceed 5 years, and
- The employee reports to work when required after the period
of military service ends.
The timeframe under which a returning employee must report
to work varies depending on the length of the military leave.
An employee who was on military leave for less than 31 days
must generally report on the first full, regularly scheduled
working day after he or she returns from military service.
Employees whose leave is between 31 and 181 days generally
have 14 days to submit an application for reemployment. Employees
who have been gone for more than 180 days will have 90 days
to submit an application for reemployment. Exceptions are
provided for employees who are recovering from illness or
injury when their military duty expires, and certain other
circumstances.
Upon returning from military leave, employees must be reemployed
in the position they would have held if they had remained
continuously employed (or, if the military service exceeds
90 days, a position of like seniority, status and pay). If
the employee is not qualified for that position, he or she
must be returned to the position held when the military leave
commenced (or, if the military service exceeds 90 days, a
position of like seniority, status and pay). Special rules
apply for employees who are no longer qualified for their
positions due to disability or other factors. Employees returning
from military service shall have the seniority (and other
rights and benefits determined by seniority) they had when
their military service commenced, plus the additional seniority,
rights, and benefits they would have attained if they had
been continuously employed.
Employers do not have to reemploy returning employees if
the employer's circumstances have changed so much that reemployment
is impossible or unreasonable, reemployment would impose an
undue hardship on the employer, or any accommodation, training
or effort required for reemployment would impose an undue
hardship on the employer. Employees would not be entitled
to reemployment if his or her position was for a brief, nonrecurrent
period and there was no reasonable expectation that the employment
would continue indefinitely or for a significant period.
Continuing Health Care Coverage Required
Employees who participate in the employer's health plan
may continue health care coverage for themselves and their
dependents for up to 18 months from the date their military
leave begins. Generally, employers may charge up to 102 percent
of the full health care premium for this coverage. However,
if the employee will be gone 31 days or less, the employee
is only required to pay his or her regular share of the premium.
If health care coverage is terminated when the employee leaves
for military service, the employer cannot impose waiting periods
or preexisting condition exclusions when the employee returns.
The employer's health plan will not be required to cover
injuries or illness that are attributable to military service
-- those will be covered by the uniformed service.
Qualified Retirement Plans
Qualified retirement plans must treat returning employees
as not having incurred a break in service by reason of military
leave. Upon reemployment, each period of military service
would be deemed to constitute service with the employer for
purposes of vesting and accruals. If accrued benefits are
based on employee contributions or elective deferrals, the
returning employee is entitled to those benefits only to the
extent that he or she makes such contributions or deferrals.
Upon returning to employment, employees who participate in
defined contribution plans are permitted to make up "missed"
contributions to their plan. Payments may be made over a period
up to 3 times the period of military service, up to a maximum
of 5 years. Employers must make up any matching contributions
that would have been required if the employee's contributions
had been made during the period of military service.
Other Provisions
Employees on leave for military service shall be deemed
to be on furlough or leave of absence and shall be entitled
to any other rights or benefits accorded to similarly situated
employees who are on leave of absence. Employees on leave
for military service shall be permitted, upon the employee's
request, to use any vacation, annual, or similar leave during
the period of service.
Employees returning from military service may be not be discharged
(except for cause) for 180 days if the employee was on leave
for 30-180 days, or for one year if the leave period exceeded
180 days.
Under USERRA, it is illegal to deny initial employment, reemployment,
retention in employment, promotion, or any other benefit of
employment to someone based on his or her membership in the
uniformed services. If an employee's membership in the uniformed
services is a motivating factor in a personnel decision, employers
will be in violation of USERRA unless they can prove that
the decision would have been made regardless of the employee's
military membership or obligation.
Questions about USERRA should be directed to Gary Helmuth,
Special Assistant to the Chief Human Resource Officer at 924-4450
or gdh5u@virginia.edu. |