Called to Arms
By Ryan DuBosar

When Nuclear Electric Insurance Ltd. lost one of its 15 loss control specialists to a military call-up in February, the company had to suddenly split the employee's workload and find a way to soldier on.
But the company had already begun its war preparations months earlier. When conflict overseas loomed, human resources manager Sue Bailor began to research the laws governing the employment of military personnel. When the call to arms came, she was ready to discuss benefits with the departing employee on short notice.

At Nuclear Electric Insurance, Ltd., an employee's desk is empty after he was called to operations in the Persian Gulf. A letter he had written to his fellow employees describes his experience overseas. Photo courtesy of Dick Dubroff/Final Focus.

"Our main concern is that we want him to not have to worry about benefits for his family while he's gone," Bailor says.

Small employers are affected the most by the large gaps created by sudden call-ups, because there are fewer people to shoulder the burden. And small businesses often don't have the human resources staff to research the laws that protect both employer and employee.

According to Lt. Col. David E. Deputy, Chief of Staff of the 166th Airlift Wing Headquarters, Delaware National Guard, there are 2,700 people in the state's Army and Air National Guards. Of that number, 700 had been activated for operations in Iraq by press time - 250 from the Air National Guard and the rest from the Army National Guard. According to Maj. Len Gratteri, spokesman for the Delaware National Guard, units were called up as recently as the week before Easter, and another 200 soldiers from an engineering unit - who in their civilian life are plumbers, carpenters and electricians - have been placed on alert for reconstruction or peacekeeping duties.

"Even though the fighting is over, there is a lot of work to do over there," Gratteri says.
Regardless of the length of services, deployment has a significant impact on Delaware businesses. According to Michael Uffner, President, Chairman and CEO of AutoTeam Delaware, "Small companies don't have personnel divisions, so typically the owner or assistant has to deal with these issues."

Because some employees leave on short notice, the MidAtlantic Employers' Association (MEA) recommends explaining to employees what their benefits are before they are called up, says Anita Dombrowski, director of HR services for the organization.
It is easier to deal with COBRA plans directly and in advance, instead of through family after the fact. If a sudden call-up should occur, the employer can then communicate to family members that benefits are already arranged. "We're encouraging employers to be proactive if they know they have someone who has been in the reserves," Dombrowski says.

The MEA prepared a White Paper for its members to explain federal laws about what businesses must do for employees who are called into active military service.
Nuclear Electric augmented federal law by making up the entire difference between military pay and its employee's salary. All benefits are covered, including health insurance and retirement. Management is even trying to maintain emotional support by inviting the employee's family to the company picnic. The CEO sent a birthday card, as he does for every employee, and the rest of the staff sent another card to the deployed Guardsman. And the staff sends e-mails to keep up contact.

AutoTeam Delaware lost one employee, an entry-level automobile detailer in the body shop, to a military call-up. But another employee in a very important position, the director of information technology, is in the reserves and has spent weekends and even some weekdays at the Naval Air Station in Willow Grove, Pa. This has required more flexibility, Uffner says. Fortunately, the employee can work remotely, which is how the business keeps running. If that person is called up into active duty, Uffner adds, he will have to outsource the duties.

"More flexibility in the workplace is really key," says MEA's Dombrowski. "Employees know their responsibilities. It's just making sure that an employer is flexible in scheduling or giving additional time off."

Dombrowski speaks not only as an employment expert, but as an employer. When a worker's husband was called up, placing additional burdens of caring for the child's nine-month-old baby, MidAtlantic responded with more flexible working hours.

"Call-ups really affect the day-to-day operations," says Jayne Armstrong, district director for the Small Business Association's (SBA) Delaware District Office. In many small businesses, the person called up is the principal partner, or even the only employee.

In these situations, the SBA can restructure, or essentially defer its loans, or even offer disaster loans to eligible small businesses. (See sidebar for contact information on all organizations.) Also, the Employers Support of the Guard and Reserve offers information for businesses and workers affected by military call-ups, as well as ombudsmen to help employers and employees in disputes while remaining impartial.

Military Leave Laws Explained
According to the MidAtlantic Employers' Association (MEA), the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) protects the jobs of employees on military leave. Employees who have taken military leave have the right to return to their civilian job without loss of seniority or benefits, according to a White Paper that the MEA wrote for its more than 800 member companies.

However, Anita Dombrowski, director of HR services for the MEA, says, "We're seeing a lot of layoffs, so there's a whole different concern about having a job left when you get back. USERRA says preserve the job, but sometimes the job or the company is not there due to financial circumstances."

Employers are free to fill vacancies left by employees on military leave. However, the employee on military leave must be returned to the appropriate position even if the replacement employee is bumped from a job.

Employers are not required to pay employees on military leave. However, many companies in Delaware have stated that they pay employees for the difference between their regular wage and military pay.

An employee on military leave does not accrue vacation or sick time. But if the company pays employees for other types of leaves, it must pay for military leave. Employees on military leave are entitled to participate in any benefits offered to those on non-military leaves, such as year-end bonuses, accrual of sick, vacation or paid-time-off days.

A returning employee should be allowed to contribute to his/her 401(k) plan any amounts that would have been contributed. Employers should contact their plan administrator for specific requirements and guidance.

MEA provides its members with services in human resources, training, compensation, benefits, safety and quality. Learn more about MEA and its programs and services at (800) 662-6238 or staff@maea.org.

Resources Available for Employers, Employees
Help for military reservists and their employers can be found in a variety of ways:

• The Delaware National Guard & Reserve Emergency Assistance Fund distributes contributions and proceeds from T-shirt sales at Happy Harry's drug stores. Contributions can be made directly by calling (302) 326-7050. Deployed military personnel of all reserve component branches of the service can request an allocation through their units.

• The MidAtlantic Employers' Association can be reached by phone at (800) 662-6238 or on the Web at http://www.maea.org.

• The Delaware District Office of the Small Business Administration can be reached at (302) 573-6382, and information is available on the Web at http://www.sba.gov/vets or http://www.sba.gov/reservists.

• Employers Support of the Guard and Reserve can be reached by phone at (800) 336-4590, or on the Web at http://www.esgr.org.

• The Department of Labor offers information at http://www.dol.gov/vets and http://www.dol.gov/ebsa.

This story originally appeared in the May/June 2003 issue of Delaware Business.