Employers Settle Claims They Shortchanged Veterans' Retirement Plans
Two companies settled charges that they shortchanged the 401(k) plans of reservists who took leave to serve in the U.S. Air Force.
The employers, Delaware Resource Group of Oklahoma LLC (DRG) and FlightSafety Service Corp., did not admit wrongdoing, but they agreed to allow two reservists to make “catch-up” 401(k) contributions, which the companies would then match.
Employers must allow catch-up contributions under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), which protects workers from discrimination based on their service in the military, and they must match contributions as though the employees had not left. FlightSafety and DRG originally refused to allow or match the payments, according to a lawsuit filed by the U.S. Department of Justice.
The Justice Department filed its complaint after failed settlement efforts by the Veterans’ Employment and Training Service, which investigates USERRA violations for the U.S. Department of Labor.
The Employment Law Group® law firm has an extensive veterans rights’ practice and has published a guide for protecting employees covered by USERRA entitled “Litigating Claims Under the Uniformed Services Employment and Reemployment Rights Act”.