In January, a district court in California approved a $60,000 settlement in a case involving USERRA (Uniformed Services Employment and Reemployment Rights Act) violations. This case serves as a critical reminder to employers of the importance of complying with federal law when it comes to military service.
Violating USERRA can result in significant financial consequences, legal battles, and harm to an organization’s reputation. Understanding what happened in this case, the laws that protect employees, and how employers can avoid similar mistakes is essential for all businesses.
This article will explore the settlement, the lessons employers can learn, and the steps to ensure compliance with USERRA. We’ll also discuss the technology and office practices that can make managing military leave easier for employers and how staying informed can prevent costly legal issues.
Understanding USERRA and Its Protections
USERRA, or the Uniformed Services Employment and Reemployment Rights Act, protects employees who serve in the military from workplace discrimination and retaliation.
This federal law guarantees that individuals who leave their civilian jobs for military service receive:
- Reemployment Rights: Employers must reinstate returning service members to the same or an equivalent position with equal rank, status, and pay.
- Protection from Discrimination: Employers cannot discriminate against employees based on their military service.
- Continuation of Benefits: Employees can maintain benefits, such as health insurance, throughout their military service.
Employers must uphold these rights, and failing to do so can result in costly legal consequences, as shown by the recent DOJ settlement.
What Happened in the DOJ’s $60K Settlement?
In a notable case last year, the Department of Justice (DOJ) took legal action against Oklahoma City Public Schools (OKCPS) for violating the Uniformed Services Employment and Reemployment Rights Act (USERRA). The case involved Air Force Reserve Staff Sergeant Michael McCullough, a veteran who had been deployed for military service. Upon his return, OKCPS blocked McCullough from resuming his position, which directly violated his rights under USERRA.
Background of the Case
Staff Sergeant McCullough had previously filed a complaint under USERRA in 2022, which was resolved through the Department of Labor’s Veterans’ Employment and Training Service (DOL-VETS). However, despite this earlier settlement, OKCPS once again blocked McCullough’s reemployment upon his return from service in early 2023. This second violation prompted the DOJ to step in.
DOJ’s Involvement and Resolution
The DOJ took swift action by filing a lawsuit against OKCPS for failing to comply with USERRA by preventing McCullough from returning to work. The case was settled through a consent decree, which included several significant terms. One of the most crucial provisions required OKCPS to pay McCullough $60,000 in damages. This amount was broken down into $15,000 for back pay and $45,000 for other damages.
In addition to the financial settlement, the consent decree required OKCPS to:
Revise Policies: OKCPS had to update its policies and procedures to ensure full compliance with USERRA.
Training: The school district was mandated to conduct training for staff using DOJ-approved materials to prevent future violations.
Monitoring: OKCPS was required to submit regular reports to the DOJ for the next two years, detailing any reemployment requests, complaints, investigations, and resolutions related to USERRA.
The agreement also included an extended monitoring period during which OKCPS would be closely observed for compliance with USERRA. This provision sent a strong message that any future violations would not be tolerated.
Clarification of “Other Damages” and its Application
One key aspect of this case was the inclusion of $45,000 in “other damages.” In USERRA cases, damages are typically calculated based on actual losses, such as back pay, benefits, and interest. However, in this case, the DOJ secured additional damages beyond the usual compensation.
What Are “Other Damages”?
The term “other damages” generally refers to compensation for factors not directly tied to financial loss, such as emotional distress, punitive damages, or front pay.
Front pay is a legal remedy that compensates an employee for lost wages when reinstatement is not feasible.
How Front Pay Applies Here
In McCullough’s case, front pay could have been used as a remedy for his wrongful non-reemployment. If OKCPS’s actions made returning to work impossible or impractical, front pay would compensate McCullough for the lost earnings he would have made had the violation not occurred. Given the amount involved, it’s plausible that the $45,000 could have been calculated as front pay, reflecting a few years of expected income.
Why Compliance Is Crucial for Employers
Employers who fail to comply with USERRA can face serious legal and financial repercussions. The DOJ settlement serves as a stark reminder of the importance of understanding and adhering to the law.
Financial Consequences: USERRA violations can result in expensive settlements, as seen in the $60,000 settlement in this case. Legal costs and damages can easily escalate beyond what businesses expect.
Reputation Damage: Companies that are found guilty of violating USERRA can suffer reputational damage. The public and potential employees may perceive the company as unsympathetic or non-compliant with important legal protections.
Employee Morale: Failure to comply with USERRA can harm employee morale, especially for veterans or military service members. Ensuring a supportive environment for employees who serve in the military is crucial for maintaining a positive workplace.
Steps Employers Can Take to Avoid USERRA Violations
Employers can take several proactive steps to ensure compliance with USERRA and avoid costly legal issues.
1. Create Clear Policies for Military Leave
Develop clear policies that outline the rights and responsibilities of employees who serve in the military. These policies should ensure employees are aware of their reemployment rights and benefits.
Include procedures for notifying supervisors of military service.
Ensure the company is prepared to handle absences related to military service.
Specify how the company will handle benefits during military leave.
2. Provide Training for HR and Management
Ensure HR staff and management are fully trained on USERRA requirements. Regular training can help prevent violations and ensure that managers understand how to handle military service leave.
Focus on key legal aspects of USERRA, such as reemployment rights, non-discrimination, and benefits continuation.
Guide how to handle situations where military leave might affect business operations.
3. Maintain Detailed Records
Keep detailed records of military service absences and reemployment dates. Documentation can help protect the company in the event of a dispute.
Record the dates employees begin and end their military service.
Keep track of any accommodations or adjustments made for employees returning from military leave.
4. Use Technology to Track Leave and Reemployment
Leverage office technology to make tracking military service leave easier. Numerous software solutions can help employers manage leave requests and ensure compliance with USERRA.
Use leave tracking systems to record and monitor military service leave.
Set up alerts for reemployment dates to ensure employees return to work on time.
Military Service and the FLSA
In many cases, military service intersects with other laws, such as the Fair Labor Standards Act (FLSA), which governs overtime pay and minimum wage. Employers must understand how these laws apply to employees on military leave.
An employee who serves in the military may also be entitled to overtime pay or other benefits under FLSA once they return to work. Employers must ensure they comply with both USERRA and FLSA regulations to avoid violations.
The Importance of Staying Informed
Staying informed about federal laws such as USERRA is essential for employers. Laws change, and compliance requirements evolve. The Department of Labor (DOL) regularly updates guidelines on military service leave, and employers should make an effort to stay up to date on these changes to avoid potential violations.
In addition to federal law, employers must also stay informed about state laws that may offer additional protections for employees in military service. For example, some states have more generous leave policies or additional reemployment rights that exceed federal standards.
By continuing to educate themselves about the law and adopting best practices, employers can ensure they remain in compliance and avoid costly legal battles.
Protect Your Company and Employees
The DOJ’s $60,000 settlement over USERRA violations serves as a valuable lesson for employers. By ensuring compliance with USERRA, creating clear policies, and maintaining a supportive workplace for employees who serve in the military, employers can avoid costly mistakes.
At Bourassa Law Group, we understand the complexities of USERRA and other employment laws. If you need assistance in ensuring your business complies with USERRA or addressing potential USERRA violations, we are here to help.
Contact us today for a free consultation.
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