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February 24, 2026

Is Your Paid Leave Policy Creating USERRA Liability?

Summary

  • Why your unpaid military leave policy might create risk
  • What USERRA protections every employer must provide
  • Recent court rulings that potentially impact military leave compliance
  • How state laws create a compliance patchwork
  • Your checklist to assess and fix policy gaps

If your paid leave policy includes jury duty or bereavement leave, you might have a compliance issue you’re not yet aware of. According to recent court rulings, employers are rethinking how they handle military leave, and the financial consequences of non-compliance may be substantial.

Since 2023, four federal circuit courts have sided with employees in military leave disputes, resulting in settlements of up to $18.5 million. The issue? Employers who pay for comparable short-term leaves of absence but treat military leave as unpaid may create risk based on these court decisions.

Let’s break down what HR professionals need to know about military leave obligations, the evolving legal landscape, and how to stay compliant.

USERRA: The foundation of military leave rights

The Uniformed Services Employment and Reemployment Rights Act (USERRA) is the primary federal law that protects employees who serve in the United States uniformed services. It ensures that service members can fulfill their military duties without losing their civilian jobs.

Who’s covered by USERRA?

All employees (and applicants) who serve in the uniformed services, including active-duty, reserve-duty, National Guard, and certain types of military training. There’s no minimum service requirement or employer-size threshold. If you have even one employee, USERRA applies to you.

Key USERRA protections

Job protection and reemployment

USERRA guarantees returning service members the right to be reemployed in their former position or a comparable role with the same status, pay, and benefits they would have attained had they remained continuously employed. If an employee would have been promoted based on tenure or with reasonable certainty, they must be reinstated to that higher-level position. This is known as the “escalator principle.”

Reemployment deadlines

The law sets specific deadlines based on service length:

  • Less than 31 days: Report by next scheduled shift after safe travel (or after travel plus eight hours of rest).
  • 31 to 180 days: Apply for reemployment within 14 calendar days of completing service.
  • Over 180 days: Apply within 90 days of completing service.

Leave entitlement

Employees are entitled to military leave for the duration of their service, whether for short-term training or extended active duty, up to a maximum of five years. Important exceptions, which allow an employee to exceed five years of military leave, include initial enlistments of more than five years and involuntary active-duty extensions.

Notice requirements

Employees must provide advance notice of military service when possible, though exceptions exist for emergencies or unforeseen circumstances. USERRA doesn’t allow an employer to require military orders prior to the start of leave, but employers may request documentation to verify service, and can require documentation upon the employee’s request for reemployment for leaves of more than 30 days.

Benefit protection

Employees can elect to continue employer-based health plan coverage for up to 24 months while on military leave, though they may need to pay the cost.

The paid leave problem: what recent court rulings mean for employers

Many employers stumble here. While USERRA doesn’t explicitly mandate paid military leave, courts are increasingly ruling that employers who provide paid leave for comparable non-military absences must also offer paid military leave.

The comparability test

Courts evaluate three factors to determine if leaves are comparable:

  • Duration: How long is the absence?
  • Purpose: What is the reason for the leave?
  • Employee control: Can the employee choose when to take the leave?

Some of the legal developments: 

Myrick v. City of Hoover (Eleventh Circuit, June 2023)

The Eleventh Circuit ruled that military leave is comparable to paid administrative leave for jury duty, internal investigations, and inclement weather. Both types of leave serve similar purposes, such as legal compliance and employee protection, and involve limited employee control over the timing of the leave. The court found that the city violated USERRA by denying reservists the same paid leave benefits offered to employees on those other types of leave.

Synoracki v. Alaska Airlines (Ninth Circuit, August 2024)

The Ninth Circuit revived a class action case, ruling that comparability should be based on the length of the specific military leave taken, not by grouping all military leave types. This case-by-case approach affects how employers structure their military leave policies.

What this means for your leave policy

The Third, Seventh, Ninth, and Eleventh Circuits have all ruled in favor of USERRA plaintiffs on paid leave issues. If your organization has employees in the states in those circuits and provides paid leave for jury duty, bereavement, or other short-term absences, review whether your military leave policy meets the comparability standard.

Example: Your company offers three days of paid jury duty leave. An employee takes a five-day military training assignment. Recent court interpretations suggest you may need to provide three days of paid leave (equivalent to your paid jury duty leave) for that comparable military absence.

State military leave laws: navigating the patchwork

Approximately 35 states have enacted some variation of military leave laws that often mirror or expand upon USERRA protections. These state laws may include:

  • Paid or unpaid leave entitlements
  • Additional job or benefit protections beyond federal requirements
  • Coverage for state-specific military activities

Examples of state variations:

  • Some states require paid military leave for state and local government employees
  • Others extend protections to National Guard and Reserve duty
  • Certain jurisdictions mandate differential pay (the difference between military pay and civilian wages)

Multi-state employers face the complexity of tracking and complying with varying requirements across jurisdictions. A policy that is compliant in one state may fall short in another.

The key takeaway: Review USERRA (and applicable court interpretations) and applicable state military leave laws to ensure your policies meet both federal and state requirements.

FMLA military leave: a critical distinction

It’s important to distinguish USERRA from the Family and Medical Leave Act’s (FMLA) military family leave provisions. These laws cover different situations.

FMLA qualifying exigency leave provides up to 12 weeks of unpaid leave for family members to manage needs arising from a relative’s military deployment. This does NOT cover the employee’s own military service; that’s the USERRA domain.

Qualifying exigencies under FMLA include:

  • Attending military events and ceremonies
  • Arranging childcare when a military member deploys
  • Attending counseling sessions
  • Managing financial and legal arrangements
  • Spending time with a service member on rest and recuperation leave
  • Addressing post-deployment reintegration needs

Some state laws, similar to the FMLA, or paid family and medical leave programs, also cover these. The key difference: USERRA protects service members during their own military service; FMLA covers the employees’ leave needs related to a family member’s deployment.

Your USERRA compliance checklist

To reduce legal risk and support employees who serve, focus on these areas:

1. Understand and comply with core USERRA protections.

Make sure policies clearly state job and benefit protections, including the escalator principle. Train managers to treat returning employees as if they had never left, including the opportunity for promotions, raises, and seniority.

2. Recognize the distinctions between leave types.

Clarify what's covered under USERRA (employee's own military service), FMLA qualifying exigency leave (family member's deployment-related needs), and state laws.

3. Review and comply with state military leave laws.

If you operate in multiple states, analyze each jurisdiction’s rules. Document how your policies meet or exceed both federal and state requirements.

4. Assess your paid leave policies.

This is a key compliance gap that's costing employers. Review all your paid leave types—jury duty, bereavement, sick leave, administrative leave—and evaluate comparability to military leave using the three-factor test (duration, purpose, control).

If you provide paid leave for comparable absences, consult with your legal counsel about whether your military leave should also be paid. 

5. Maintain clear documentation and communication.

Document military leave requests, notices, and your responses. Communicate employee rights and your processes clearly. Train managers to handle military leave requests properly and avoid discriminatory comments.

6. Seek legal advice for complex situations.

USERRA compliance issues can be complicated, especially when they intersect with state laws and paid leave policies. When you face jurisdiction-specific questions or need to evaluate your paid leave policy’s impact on USERRA and military leave, get experienced guidance.

Common employer mistakes to avoid

According to Department of Labor data, more than 1,000 USERRA complaints are filed annually, most involving discrimination or improper reemployment. Here are the mistakes that frequently lead to violations:

  • Treating voluntary and involuntary service differently – USERRA covers both
  • Failing to apply the escalator principle – Not promoting returning employees who would have advanced
  • Requesting excessive documentation – Only certain documentation can be required upon the employee’s request for reemployment (not at the start of the leave), and only for leaves exceeding 30 days
  • Allowing discriminatory workplace comments – Manager complaints about military absences can be used as evidence of discrimination

Remember: USERRA has no statute of limitations and no exhaustion requirement. Employees can file complaints with the Department of Labor or go directly to court. Willful violations can lead to back pay and liquidated damages (equal to back pay owed), resulting in double the back pay owed.

Looking ahead: emerging compliance considerations

The military leave landscape is evolving. Recent laws have extended USERRA protections to additional service categories, including FEMA reservists responding to disasters and National Guard members performing state active duty. While not all employers are affected, this shows a trend toward broader protections for various types of military service.

As courts continue interpreting the comparability standard for paid leave, expect ongoing litigation. The financial stakes are high, often favoring service members.

Get guidance

The intersection of USERRA, state laws, and recent court interpretations creates complex compliance questions. If you're wondering whether your paid leave policy creates exposure, how to handle a reemployment situation, or what documentation you can request, you're not alone.

We work with HR teams navigating these challenges every day. Have a question about your military leave obligations? Reach out—we're here to help you work through your specific situation.
 

Contributor

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Jim Jantz, JD

Director of Compliance – Absence, Disability, & Life