TO:                  Business Leader

FROM:             John J. Ferriter, Esquire

DATE:             January 18, 2005

RE:                   New USERRA Regulations Effective Immediately

______________________________________________________________________________

            A new federal law signed by President Bush on December 10, 2004 significantly increases workplace protections for employees on military leave and places new responsibilities on employers by amending portions of the existing Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).  Employers are now obligated to give employees called up to military duty an opportunity to continue group health coverage for themselves (and spouses and dependents) for up to 24 months.  This eligibility is provided for individuals electing coverage beginning on and after December 10, 2004.  Under the new law, employers are obligated to provide an annual notice of USERRA rights and obligations to affected employees.

Employment Rights

            In general, an employee returning from military duty is entitled to reemployment in his or her original position, or one of comparable seniority, status and pay, unless conditions in that workplace have changed so radically that reemployment would be ?impossible? or ?unreasonable.?

The Escalator Principle

            When reemployed, the returning workers are to be placed on the seniority scale not just as the place where they left but in the position they mostly likely would be had they stayed on the job.  Conversely, if a soldier?s job is eliminated in a downsizing, the employer isn?t required to create a new one.

Vacations and Benefits

            If your company grants employees vacation days based on years of service, the returning soldier?s benefit must be calculated as if he or she never left.  If your retirement plan has a specific vesting schedule, the returning employee must be credited with the time spent on active duty.

Discrimination Prohibited

            Employers may not discriminate or retaliate against any individual, in the hiring process or in any aspect of employment, based on that individual?s membership in, application for, or performance in a uniformed service.

            All employers are required to provide an annual notice of USERRA rights and obligations to affected employees.  The government recommends posting this new mandatory notice where you display all other required employee notices.  Your company has until March 10, 2005 to comply with the new notification requirement.  If you have any questions, contact Jack Ferriter at 413-535-4200 or jferriter@ferriter.com.