USERRA entitles employees returning from military leave to the jobs and benefits they would have had if they did not take leave.
The Department of Justice recently enlightened two employers on this fact as it relates to 401(k) contributions. Specifically, the employers did not provide two returning Air Force veterans the ability to make catch-up contributions to their 401(k) accounts and thus qualify for an employer matching contribution. In the settlement agreement, the employers agreed to rectify the mistake. One employee was allowed to make up more than $20,000 in contributions, spanning the years 2006-2008. The other employee was permitted to make up more than $35,000 in contributions, spanning the years 2006-2010.
In addition to restored benefits, employees who take USERRA have rights that are subject to the “escalator principle.”
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