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In December, President Bush signed into law the Veterans Benefits Improvement Act of 2004. The new law amended and expanded portions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), the primary federal law affecting employees' rights and employers' obligations with respect to military leave. The law includes two provisions of critical importance for employers.
First, employers now have a legal obligation to post a notice informing employees of their rights under USERRA. The notice must be placed in the area(s) in which employers customarily place notices for employees. The Department of Labor recently issued a poster containing the required information, entitled "Your Rights Under USERRA," which is available on its website. Employers need to comply with this new requirement by immediately posting the required notice.
Second, the law changes the maximum period of time for which an employee may elect to continue employer health plan coverage. USERRA generally provides that if an employee's health plan coverage would terminate by virtue of absence due to military service, the employee may elect to continue health plan coverage on a basis similar to COBRA. The new law increases from 18 months to two years the period during which employers must provide employees in military service the option of maintaining employer-sponsored health insurance coverage.
First, employers now have a legal obligation to post a notice informing employees of their rights under USERRA. The notice must be placed in the area(s) in which employers customarily place notices for employees. The Department of Labor recently issued a poster containing the required information, entitled "Your Rights Under USERRA," which is available on its website. Employers need to comply with this new requirement by immediately posting the required notice.
Second, the law changes the maximum period of time for which an employee may elect to continue employer health plan coverage. USERRA generally provides that if an employee's health plan coverage would terminate by virtue of absence due to military service, the employee may elect to continue health plan coverage on a basis similar to COBRA. The new law increases from 18 months to two years the period during which employers must provide employees in military service the option of maintaining employer-sponsored health insurance coverage.