Federal Statutes of Limitations, Inapplicable to USERRA Claims, New Law Clarifies

President Bush has signed into law the Veterans' Benefits Improvement Act of 2008 which clarifies that there is "no limit on the period for filing" a complaint or claim under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). The new law, designed to improve and enhance compensation and pension, housing, labor and education, and insurance benefits for veterans, also reforms the USERRA complaint process and modifies and expands the reporting requirements with respect to enforcement of USERRA.

The Department of Labor had long taken the position that no federal statute of limitations applied to actions under USERRA. According to the Labor Department, USERRA's provision that state statutes of limitations are inapplicable, together with USERRA's legislative history, showed that Congress intended that the only time-related defense that may be asserted in defending against a USERRA claim is the equitable doctrine of laches. However, there have been federal court decisions ruling that the four-year uniform and general statute of limitations (for federal causes of action not governed by an explicit statute of limitations), codified at 28 USC Section 1658, applies to USERRA claims (see Rogers v City of San Antonio, Texas, 83 EPD ¶41,209 (WDTex 2002), reversed on other grounds, 85 EPD ¶41,800 (5thCir, 2004); see also O'Neil v Putnam Retail Mgmt, 407 F. Supp 2d 310 (DMass 2005 and Nino v Haynes Int'l, Inc, 2005 US Dist LEXIS 43971 (SDInd)). The new law clarifies (at Section 311(f)(1) ) that federal statutes of limitations are inapplicable to USERRA.

The new law also reforms the USERRA complaint process by requiring the labor secretary to: (1) notify a veteran in writing of his or her rights within five days after a complaint has been filed; and (2) provide nonfiction of the results of the investigation in writing. In addition, the law modifies and expands the Labor Department's reporting requirements under USERRA by, among other things, requiring the Secretary of Labor to submit a report on USERRA enforcement actions to Congress each year by July 1 (the due date was previously February 1) and by requiring that report to include the number of actions initiated by the Office of Special Counsel and the Merit Systems Protection Board (in addition to the previously existing requirement of reporting the number of complaints filed by the Attorney General). The law also requires training for executive branch human resources personnel on employment and reemployment rights of uniformed services members employed by federal executive agencies.

The Senate approved the legislation (S. 3023) by unanimous consent on September 27, 2008, and the House passed the bill by voice vote on September 24. The President signed the bill on October 10.

Reprinted with permission. © CCH

Federal Statutes of Limitations, Inapplicable to USERRA Claims, New Law Clarifies President Bush has signed into law the Veterans' Benefits Improvement Act of 2008 which clarifies that there is "no limit on the period for filing" a complaint or claim under