Violating USERRA Can Be Costly

A Pepsi driver in Ohio was awarded $84,000 in compensatory and punitive damages after a federal court ruled that his employer denied him a pay differential for time he spent in basic training after he voluntarily enlisted into active duty.  The Court found that the denial of a benefit was “improper and willful” and awarded the employee double compensatory damages ($33,926), punitive damages ($50,000) and attorneys’ fees.

Employees who serve in a uniformed service are protected under the Uniformed Services Employment and Reemployment Rights Act (USERRA).  Employers should be aware that the USERRA does not require employers to pay employees during military leave, but if an employer establishes a benefit it may not, “discriminate” against employees whose military service is voluntary.  In this case, Pepsi had adopted a policy to pay the difference in pay between military pay and the employee’s salary but did not follow it for the driver who enlisted.  Koehler v. PepsiAmericas (S.D. Ohio 2006).

 Any questions regarding USERRA, or any other human resources topic, you can contact David L. Hansen, SPHR, CCP at (515) 221-1718 or hansend@hr-onesource.com.