Michael J. Sipos, USERRA Violations, Delaware 2023

Two employers in Delaware have agreed to settle with the US government for violating the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Delaware Resource Group of Oklahoma LLC (DRG) and FlightSafety Services Corporation (FlightSafety) have been accused of not paying money into two U.S. Air Force veterans’ 401(k) plans, violating USERRA’s protections for military personnel.

According to the complaint, Michael J. Sipos and Gary D. Smith, the two veterans, were discriminated against and took adverse employment actions due to their military service. USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because they have performed service in the uniformed services.

The settlement agreement, filed in U.S. District Court in Denver, allows the defendants to make their ‘catch up’ contributions to their respective 401(k) plans. Additionally, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.

The Civil Rights Division of the US Department of Justice, led by Assistant Attorney General Thomas E. Perez, has made a high priority of enforcing service members’ rights under USERRA. The department has commended DRG and FlightSafety for resolving the matter amicably without contested litigation, showing a good faith commitment to ensuring compliance with USERRA.

The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts.

The settlement highlights the importance of protecting the rights of military personnel upon their return to civilian life. USERRA’s protections ensure that service members are not discriminated against or penalized for their military service.

The case serves as a reminder that the US government will take action to enforce the rights of military personnel and ensure that companies comply with USERRA’s provisions. The settlement agreement demonstrates the importance of cooperation between the Departments of Labor and Justice in protecting the rights of National Guard and Reserve service members.

For more information about USERRA, visit www.dol.gov/vets/programs/userra/main.htm.

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