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Several Employees Are Reservists That Have Been Activated. What Now?
What happens if one or more of your reservist employees is called to active duty? A federal statute, the Uniformed Services Employment and Re-Employment Rights Act, governs the job status of reservists and veterans.
Again, nothing is simple; this is a complicated statute that presents employers with serious potential pitfalls. Basically, an employer's obligations in this arena fall into two categories: retention of health and pension benefits; and reinstatement rights. In respect to health benefits, if the employee is gone for 31 days or less, the employer must continue to pay for health benefits, but if the employee is gone for 32 days or more, the employee has certain rights to continue on the employer's health plan, similar to COBRA rights. Once re-employed, the employee must be immediately reinstated, with no waiting period or other conditions normally imposed on new hires.
With respect to retirement plans, employees must be given credit for time spent on military leave and are not subject to qualification or waiting periods once re-employed. In addition, employers must make up contributions which have been suspended during the employee's leave once the employee is re-hired.
In respect to reinstatement, the situation becomes complicated. The employer must make the maximum amount of employer-allowed leave available to an individual who is called into service. For example, if the employer provides six-month sabbaticals to certain employees, an individual called to military service must be provided that benefit, and the employer cannot require that the employee use accrued vacation, sick time or other paid time off (although if the employee requests to use it, the employee must be permitted to do so). Even if the employee exceeds the amount of permitted leave and is terminated, the employee is still entitled to reinstatement if the individual meets certain pre-conditions.
The above represents only a thumbnail sketch, at best. This is a complicated area, and it must be dealt with in a way that it accounts for the nuances and technicalities of the statute. You will need to seek counsel.
Counsel Consulting Group LLC helps companies throughout the United States avoid employment and HR-related claims and liabilities. CCG assesses existing policies, procedures and problem areas; it provides customized liability-avoidance training to managers and executives; and it designs and implements business techniques that reduce employment liability risks on a long term basis. CCG also offers specialized workshops for managers and HR executives, customized consulting in focused employment-related areas, and CD-ROM and web-based training alternatives. For more information, contact us at info@powelltrachtman.com and visit our website at www.counselconsulting.com.
Powell, Trachtman, Logan, Carrle & Lombardo, P.C. is a full service law firm with offices in suburban Philadelphia, PA, Harrisburg, PA and Cherry Hill, NJ. Powell Trachtman represents a variety of commercial enterprises, entrepreneurs and business executives in respect to their litigation, litigation avoidance planning, business formation, business transactions, estate and tax planning, and other needs. We are also approved defense counsel for numerous insurance carriers in matters pertaining to professional malpractice, products liability, employment practices, directors and officers liability, and many other fields. For more information, contact us at info@powelltrachtman.com and visit our website at www.powelltrachtman.com.
