Jump To Navigation

Publications

What Does The Employer Have To Do When The Employee Returns?

Here is the more difficult part. Joe got called to active duty, and was on military leave for a year. He held a key position that you had to fill in his absence. You hired Sally, who did a great job while Joe was away. Sally is entrenched in the position, she has the most current knowledge and has the most current business relationships on which your company depends. Joe stops by, tells you that he needs a job, and thinks it is only fair that he be permitted to pick up where he left off. Now what?

The law imposes requirements that will, no doubt, cause substantial economic prejudice to many employers (and, for that matter, replacement employees). Obviously, the purpose of the law is to protect the economic interests of those who serve their country, but in the process some employers, particularly small companies, could suffer economically. The highlights:

Based on what is often called the "elevator principle," the general rule is that you are required to re-hire your returning employees to the position they would have attained if they had been continuously employed during the period they were on military leave. If the returning employee is truly unqualified for the promoted position, then you must make reasonable efforts to train the employee. If that is not possible, the employee must be returned to his or her former position, or to another position with equivalent status, seniority and pay;

There are exceptions to the general rule, some of which are subjective and difficult to apply in a predictable way. For instance, an employer may not have to re-hire an employee for military leave in the following instances: the employer's circumstances have changed to the extent that it is impossible or unreasonable to re-hire the employee; the employee could not be re-trained or otherwise re-qualified despite the employer's efforts; the employee's original job was temporary and there was no reasonable expectation that it would continue indefinitely;

When an employee returns from more than six months active duty, he or she cannot be fired without good cause, for a full year. Among other things, good cause includes threats against the employer, interference with employer's business, charges of illegal conduct and conflicts of interest such as establishing a rival company;

If your company undergoes a change of control while the employee is on military leave, the successor employer has the same obligations to the returning employee;

Upon return from military leave, you must reinstate the employee to your retirement plan, make your contribution and allow the employee up to three times the period of leave to make the contributions that would have been ordinarily made but for the period of military service;

Employees who are dishonorably discharged do not receive these legal protections.

Generally speaking, under USERRA, in order to be entitled to re-employment rights, the employer must be given advance notice of the employee's impending military service, either from the employee or an appropriate military officer, unless it is not practical or reasonable to give such notice. Employers may ask to be notified as soon as possible after the employee receives military orders and may request copies of any official papers with regard to the military service. Also, if the employee has the option of choosing when to carry out the military duty, the employer may ask the employee to take the employer's business needs into account when planning leave. However, the employer may not penalize the employee for not complying with the employer's wishes. In addition, there are statutory time limits that define when the employee must apply for re-employment after completion of military service.

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.

©Copyright 2003 Powell, Trachtman, Logan, Carrle & Lombardo P.C. All rights reserved, except that recipients hereof are permitted, for noncommercial purposes, to provide copies or excerpts, with full attribution to us, to other interested persons for their personal use. Avoiding Lawsuits is distributed for general informational purposes only. It is not a substitute for personalized legal advice from a competent attorney.

Problems Prevented and Solved

Representation of retail distributor in acquisition of store locations - read more

Successful representation of design professional in historic building damage claim - read more

Successful resolution of claim against architectural firm involving design of concert hall - read more

Representation of company in the negotiation and drafting of executive employment agreements - read more

$37 million verdict in contractor/municipality dispute - read more

Defense verdict in whistleblower/wrongful termination claim - read more

Acquisition, financing and development of manufacturing facility - read more

Defense verdict for accounting firm in "deepening insolvency" case - read more

Updating estate planning documents reveals major flaws - read more

Representation of numerous companies in structuring reductions in force - read more

Acquisition of industrial property requiring environmental remediation - read more

Representation of manufacturing entity in asset-based lending transaction - read more

Successful negotiation with the IRS to eliminate mounting interest and penalties for estate heirs - read more

Successful settlement of action against architect in multi-phase condominium project - read more

Defense verdict in favor of lift manufacturer - read more

Successful resolution of a deficient design claim for a designer and construction manager of a warehouse distribution facility - read more

Six-figure settlement for manufacturing firm against consultants - read more

Successful resolution of quadriplegia personal injury claim against college - read more

Creative estate tax planning for the owner of a Subchapter S Corporation - read more

Successful defense of computer hardware manufacturer - read more

Successful resolution of sexual harassment claim - read more

Successful settlement of architectural malpractice claim in roof collapse case - read more

Examples of "preventive law" advice provided to clients - read more

Creation of ESOP as part of founder's succession plan - read more

Successful enforcement of covenant not to compete - read more

Successful defense of electrical product manufacturer - read more

Successful defense of unfair competition action - read more

Successful resolution of multi-million dollar hotel water intrusion/mold growth claim - read more

Negotiation of a multi-million dollar statewide strategic sourcing contract - read more

Successful resolution of gender and race discrimination claim - read more

Successful defense in architectural malpractice claim involving medical facility - read more

Successful defense of employee's pregnancy discrimination and family leave act claims - read more

Negotiation and finalization of software transfer transaction - read more

Successful resolution of shareholder buy/sell claim - read more

Successful resolution of claim by business buyer against business seller - read more

Successful settlement in favor of architect on highway design claim - read more

Contact Us

475 Allendale Road, Suite 200
King of Prussia, PA 19406
Phone: 610-354-9700
Fax: 610-354-9760
Directions to King of Prussia Office
email us

1814 East Route 70, Suite 350
Cherry Hill, NJ 08003
Phone:856-663-0021
Fax: 856-663-1590
Directions to Cherry Hill Office
email us

114 North Second Street
5th Floor
Harrisburg, PA 17101
Phone: 717-238-9300
Fax: 717-238-9325
Directions to Harrisburg Office
email us

651 Holiday Drive
Foster Plaza 5, Suite 300
Pittsburgh, PA 15220
Phone: 412-250-2632
Fax: 412-250-4804
Directions to Pittsburgh Office
email us