Final Rules on Military Service for Employee Benefits - USERRA

On December 19, 2005, the Department of Labor (DOL) issued final rules implementing the Uniformed Services Employment and Reemployment Rights Act (USERRA). These final rules adopt, with some changes, interim rules issued on March 10, 2005. The interim rules implemented a requirement of the Veterans Benefits Improvement Act of 2004 (VBIA).  The VBIA amended USERRA by adding a requirement that employers provide employees with a notice of the military leave rights, benefits, and obligations employees and employers have under USERRA. A model notice that employers could use to satisfy this notice obligation was included in the interim rules.

The final rules released earlier this week revise the model notice. There are now two separate model notices - one for use by private sector and state government employers; the other for use by federal agency employers. Go here to view the two new notices. Both model notices replace any prior model notices and should be provided as soon as possible to employees entitled to rights and benefits under USERRA. Employers may satisfy this requirement by posting the applicable notice where employee notices are customarily placed, or they may provide the notice to employees by hand, mail, or electronic delivery. The final rules are effective January 18, 2006.

The DOL also issued a second set of final rules this week implementing USERRA. Under these final rules, the DOL adopts, with changes, the proposed regulations that were issued September 20, 2004 and clarifies pertinent provisions of USERRA. These final rules are also effective January 18, 2006. Employers should ensure their plan documents, communication pieces, and related materials are updated to comply with the final regulations.

If you have any questions or would like additional information about or assistance with either of the final USERRA rules, please call or e-mail your Ice Miller benefits attorney, or Jim Kemper or Tiffany Sharpley.