In part because of reinvigorated focus from Congress and the executive branch, in part because of employers reaching out to hire veterans, employment of veterans has improved over the past year. According to data from the Bureau of Labor Statistics (BLS), from February 2011 to February 2012, the unemployment rate for veterans 18 and older decreased from 9.2% to 7.0%, lower now than the unemployment rate for nonveterans.
Today, the President acted quickly to sign into law the VOW_ to_ Hire_ Heroes_ Act_of_ 2011.pdf. In one of the few displays of both bipartisan and bicameral actions in recent times, Congress passed the legislation intended to assist unemployed veterans find employment. In a symbolic vote on November 10, the day before Veterans Day, the Senate unanimously passed its bill (95-0), which was based upon the House-passed Veterans Opportunity to Work (VOW) Act. The House followed quickly to pass that bill on November 16.
The Department of Labor’s Bureau of Labor Statistics (BLS), in its the October 2011 report, showed that the overall jobless rate for veterans, at 7.7%, was lower than the national rate of 9%, but for those who served in Iraq and Afghanistan, the rate was much higher--12.1%. Some 2/3 of these veterans are under age 35. Breaking the figures down further, Gulf War era II veterans, i.e., those who served since September 2001, who were current or past members of the National Guard or Reserve, suffered a worse unemployment rate in July, of 14%. This was still better than young, male veterans (ages 18-24), who had an unemployment rate of 21.9% in 2010.
The law provides a variety of methods to turn this situation around. Among its key provisions are its increases in education and training, job counseling, transition and placement assistance, and additional help for disabled veterans. It also amends the Uniformed Services Employment and Reemployment Rights Act (USERRA) to clarify what constitutes a benefit and a hostile work environment. One of the biggest boosts toward the goal of getting veterans employed is likely the tax credits to be given to employers hiring veterans. The law would provide a tax credit of up to $5,600 for hiring veterans who have been looking for a job for more than six months, a $2,400 credit for veterans who are unemployed for more than 4 weeks but less than 6 months and a tax credit of up to $9,600 for hiring veterans with service-connected disabilities who have been looking for a job for more than six months.
Two appellate courts, in the space of days, ruled on cases under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Both affirmed substantial awards to the employee because of the employer’s willful disregard of the law. Both involved pre-service jobs with pay that included commissions. Fryer v. A.S.A.P. Fire & Safety Corp., No. 10-2047 (1st Cir. Sept. 9, 2011); Serricchio v. Wachovia Securities. LLC, No. 10-1590 (2d Cir. Sept. 13, 2011).
These cases make clear that employers should promptly reemploy a returning servicemember into the proper “escalator” position, i.e., one with the “seniority, status and pay” of the pre-service position. While that may seem an easy obligation, it often is difficult to identify that position, particularly where the pre-service job involves commissions and changing markets. That the market may have changed and that there is not a certainty as to what would have occurred to the position during a servicemember’s absence does not establish a legal defense.
On August 5, President Obama proposed that companies who hire returning military service members would receive new tax credits. These incentives would start with a $2,400 credit for hiring an unemployed veteran or $4,800 for hiring a veteran who has been unemployed for six months. An existing tax credit for firms hiring veterans with a service-connected disability would increase to $9,600. The cost of this program is expected to cost $120 million over the next two years. The House Committee on Veteran Affairs chairman, Jeff Miller, commended the proposal.
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