Called to Duty: Finding a Fit Between Civilian Employment and Activation

by Michelle M. Haas-Dosher

National Guardsman Debbie Frazier returned home in April, 2004, after an 11-month stateside deployment. Frazier's unit was made up of members from career active Guard and Reserve soldiers to students, small-business owners, and professionals leaving lucrative jobs who took drastic cuts in salary.

According to Bobby G. Hollingsworth, executive director of the Employer Support for the Guard and Reserve (ESGR), one-third of mobilized National Guard and reservists suffer some financial hardship; one-third generally break even; and one-third actually "make" money while activated.

Frazier, the child youth liaison education outreach services director, U.S. Army Yuma (Ariz.) Proving Ground, recalls one fellow reservist who took a 50% reduction in pay while activated.

The ESGR, a volunteer Department of Defense organization, provides free education, consultation, and, if necessary, mediation for employers and their National Guard and reserve employees. Hollingsworth, an army major general, now retired, served in the Marine Corps--13 years active duty and 25 � years in the Reserves.

Your return to work rights

Congress enacted the Uniformed Services Employment and Re-employment Rights Act (USERRA) in 1994 because of complaints from veterans of the first war in Iraq.

The law prohibits companies from discriminating in hiring service members or taking any adverse action against employees because of their military service. Employees called to military service generally are supposed to get their jobs back, unless a company can prove that a job was eliminated, such as in a major financial restructuring, and no equivalent job is available. Federal law says employers must provide reservists with equal or better-paying jobs when they return to work.

Under the terms of USERRA, you are entitled to anything that would have happened had you remained in the position--a promotion, perk, change in office space. Returning soldiers also are entitled to any pay raises they were in line to receive had they not been called to serve. Employees deployed with the military reserves or the National Guard for more than six months have up to 30 days after they return to resume their jobs.

Some employers simply don't understand the law and that's where the soldier can run into problems. It's not uncommon for soldiers to return to find trouble with their jobs.

On the other hand, Hollingsworth says many companies go above and beyond what the law requires. Many employers provide pay differentials for Guard and reservists to make up for what they lose when they're activated. Some even continue health benefits.

Hollingsworth says that almost half of active-duty military also have civilian jobs waiting at home. In Iraq, 37% of the forces are from Guard and Reserve units.

General Electric Co., an ESGR Freedom Award recipient, has a division that recruits military folks from the Guard and Reserve. GE recognizes that these employees bring something to the organization that's not inherent in every employee, such as the training they get while young, early in their military careers.

"Our military today is more technical so these folks bring those skills and a world view," Hollingsworth says. "It's not the same as when the Guard and Reserve would go to the training center once a month and then go somewhere for two weeks in the summer. Now they continually are being deployed around the world and they bring back a global perspective to businesses--which is a great addition to their work staff."

American Express, another award winner, pays full salary and benefits for mobilized employees. While Richard Unda, a business analyst for American Express, was mobilized, American Express consolidated and eliminated his job. When Unda returned, American Express placed him in another position equal to his status before he left.

Unda says the company didn't have to continue his employment at all because, according to USERRA, when a position is eliminated and other people are eliminated as well, the company doesn't have an obligation.

Small business can mean no business

Approximately 400,000 plus Guard and reservists either are employed by or are owners of small businesses in this country.

"We had several soldiers who had been activated and requested a REFRAD (return from active duty) because they basically were going broke," Frazier says. "Farmers were hit the hardest." When one cattle farmer was deployed, his wife tried to run the business. She was a full-time teacher, had two children, and really didn't know the details of the business. He had tried to get help before he left, but that didn't work out. "The soldier requested to go home--he literally was losing the farm," Frazier says.

Hollingsworth tells of Staff Sergeant Wilson, a member of the D.C. National Guard, who returned from a 12-month deployment in Iraq. He owned his own small trucking and landscaping company. His role had been to go out and sell the jobs. He had a small crew to help him during a landscape job, but he ran the company. When he was mobilized, there was no one to do that, so his company folded. When he came back, he had to start from scratch.

"But when I talked to him," Hollingsworth says, "he had a smile on his face and a challenge in his heart." Wilson told Hollingsworth, "It was a minor setback, my country needed me and I was ready to go, and I served. Now I'm ready to go back and get to work rebuilding my company."

Wilson and his family had to use some of their savings to get by. Luckily they had savings--too many people don't.

"We [the ESGR] try to identify those people--who are going to get hurt--very early on in the mobilization," Hollingsworth says. "If we know who these small-business owners are, we can be proactive, and if we know when they're going to get mobilized, we can start with the Small Business Administration (SBA) and start making connections for those deployed."

Many credit unions as well will expedite loans to credit-worthy small businesses.

"We want to make sure we're taking care of these folks as they go fight the war on terror," Hollingsworth says. "The last thing we want when somebody goes to war is for that person not to be focused on the job at hand."

Watch your pay

Connie Everly, social service representative, U.S. Army Yuma (Ariz.) Proving Ground, says when units are activated they frequently move around; it takes awhile for paperwork to catch up with them. This can adversely affect soldiers' pay. If they're in transit going from point A to point B, they could end up with an outstanding debt or travel voucher, which could create interest and finance charges.

The military also issues travel cards for soldiers for travel expenses. However, the military member has to pay out of pocket for the expenses if a bill comes before reimbursement, and/or if they exceed per diem.

Everly says she encourages soldiers to watch their leave and earnings statement (similar to a paycheck and record of vacation time in the civilian world), especially allowances for clothing, housing, separation, or flight pay, and pay attention to see if they're being underpaid or overpaid.

"This is important because, if Uncle Sam pays you too much, the government will take what is owed in lump sums--which can result in 'no pay due,' " Everly says. "Paperwork may not sound important, but it really is. It has a snowball effect and it can cause a lot of problems."

One way to keep current on your finances is to use the online services your credit union may offer.

"The bottom line is that families who were good at sharing financial information with their spouses saw much fewer problems during deployment than those who didn't communicate--even if there was a decrease in income," Frazier says.

August 23, 2004