Employment Law Update

March 2005

USERRA Changes and New Model Notice

The Department of Labor ("DOL") issued a press release on March 10, 2005 providing guidance regarding certain recent amendments to the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"). President Bush signed the amendments into law on December 10, 2004, as part of the Veterans Benefits Improvement Act.

Employers should be aware of these two important changes:

The maximum period an employee can elect to continue coverage under his or her employer's sponsored health care plan while absent from work due to military service (even if the employee is not otherwise covered by COBRA) has been extended from 18 to 24 months. Any continuation coverage elections made after December 10, 2004 qualify for the new 24 month maximum. Employees who elect coverage continuation can be charged up to 102% of the full premium under the health care plan (unless absent from work for less than 31 days, in which case the employee cannot be charged more than the employee's normal share of the cost).

Employers must provide employees notice of their USERRA rights and benefits. With its press release on March 10, 2005, the DOL released a new model notice for this purpose. Employers should post the new notice in visible locations where other required employee notices are posted. A free copy of the new model notice is available online at http://www.dol.gov/vets/programs/userra/poster.pdf.

Please contact us if you have questions or want more information. Please note that the information contained in this newsletter is not intended to provide specific legal advice. You should consult with an attorney and not rely on any information contained herein regarding your specific situation.