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What Are the Most Common USERRA Compliance Mistakes Employers Make?

12/15/2025

Understanding and avoiding common USERRA compliance errors is critical for employers. The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects employees performing military service, but its nuances often lead to misunderstandings about reinstatement time limits, pay during leave, and termination rules. Based on guidance from the U.S. Department of Labor, missteps in these areas can result in significant legal liability.

How Long Are Reemployment Rights Protected Under USERRA?

A common misconception is that USERRA’s protection is an absolute five-year limit. While the general rule states that an employee is entitled to reemployment for up to five cumulative years of military service, critical exceptions exist. Certain categories of service are explicitly excluded from this five-year accumulation.

For example, the two-week annual training and monthly weekend drills required for Reservists and National Guard members do not count toward the five-year limit. An employer might see language in military orders stating the service is "exempt from the 5-year cumulative service limitation." Denying reinstatement based solely on a five-year calculation, without considering these exceptions, is a frequent and serious compliance error. Employers must assess the nature of the service, not just its duration, before making any reinstatement decisions.

Is Military Leave Under USERRA Paid or Unpaid?

Many employers operate under the assumption that military leave is always unpaid. The answer, however, is: it depends on your other leave policies. USERRA itself does not mandate paid leave. Instead, it requires that employees on military leave receive the "most favorable treatment" given to any comparable form of leave when it comes to non-seniority benefits—benefits not tied to an employee’s length of service.

Determining "comparable" leave is the central challenge. Factors include the leave’s duration (often the most critical factor), its purpose, and the employee’s ability to choose when to take it. For instance, if an employer offers paid personal leave or sabbaticals that are similar in duration to a military leave, it may be obligated to provide pay during the military absence. This area is frequently litigated, so employers should proactively review their paid leave offerings with legal counsel. Furthermore, some state laws provide greater rights, such as paid military leave, making it essential to understand jurisdiction-specific regulations.

Leave TypeTypical DurationUSERRA Comparability Considerations
Military LeaveVaries (days to years)The baseline against which other leaves are compared.
Annual Vacation1-2 weeksMay be comparable to short-term military training.
Personal Leave1-4 weeksCould be comparable if duration and purpose align.
SabbaticalSeveral months to a yearMay be comparable to extended military deployments.

Can You Terminate an Employee on Military Leave?

Under no circumstances should an employee be terminated for being on military leave. USERRA explicitly considers employees on military duty to be on a protected furlough or leave of absence. Terminating an employee during this legally protected leave, even with the intention of rehiring them later, is a direct violation of the law.

A scenario might arise where an employer’s paid military leave policy expires, but the employee's service continues. The correct action is to place the employee on an unpaid leave of absence until their USERRA reemployment rights are exhausted. Termination at this point is illegal. The law is designed to protect service members from being penalized for their service, and any termination decision must be completely separate from and uninfluenced by their military obligations.

To ensure USERRA compliance, employers should:

  • Understand the exceptions to the five-year service limit and never deny reinstatement without verifying the type of service.
  • Audit paid leave policies to determine if any are "comparable" to military leave, potentially creating an obligation for pay.
  • Never terminate an employee on military leave. Place them on an unpaid leave of absence once paid leave is exhausted.
  • Consult with legal counsel to navigate complex comparability analyses and ensure all decisions are legally supportable.
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