Reserve Military Duty

In the aftermath of the September 2001 terrorist attack in the U.S., tens of thousands of reservists serving in the Armed Forces have been called up for active duty. If any of your employees are reservists, you (already) may be affected for an indefinite period if military units that your employees belong to are activated.

Reservists include the reserve components of the five major armed-forces branches: Army, Navy, Air Force, Marine Corps, and Coast Guard. Reservists also include the National Guard, the state militia that is a reserve component of either the Army or Air Force. Reserve units are comprised of ordinary citizens who serve as part-time soldiers and sailors -- the "citizen-soldiers" who have served in every major military campaign since the American Revolution.

The Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 governs employers' treatment of employees who serve in the reserves. If ordered to active duty, the employee is required to notify you by submitting a copy of his or her orders.

Generally, USERRA covers all employers in the U.S. It also prohibits employers from discriminating against reservists in hiring. Depending on duty station and assignment, an employee may face an active-duty assignment of several months or longer. Some of the hundreds of thousands of reservists activated in the 1991 Gulf War served on active duty for six months to a year or longer. For more information on USERRA, see the Non-Technical Resource Guide to USERRA at the U.S. Department of Labor Web site.

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The National Committee for Employer Support of the Guard and Reserve (NCESGR) is an additional resource for managing reservist employees. The non-profit association of employers recognizes and awards employers with policies that actively support Reserve and National Guard military duty.

The Soldiers and Sailors Civil Relief Act (SSCRA) of 1940 provides some financial breaks to reservist employees who are called for active duty. Under this law, reservists who are materially affected by serving on active duty may receive an interest-rate discount to 6% on mortgage, credit card, and related debt while on active duty. SSCRA also temporarily protects reservists and their dependents from eviction, repossession, or collection of certain kinds of judgments.

Reservist employees who take a substantial pay cut to serve on active duty are likely to be considered as materially affected under SSCRA. As employer, you can elect to pay any income the employee loses as a result of serving on active duty at lower pay. Keep in mind, however, that making up for an employee's lost income may result in the employee losing eligibility under the "materially affected" rule.

For additional information on the Soldiers and Sailors Civil Relief Act, see the Web site of Myvesta.org, a non-profit organization.

The above information is educational and should not be interpreted as financial or legal advice. For advice that is specific to your circumstances, you should consult a financial or legal adviser.