Sixth Circuit: USERRA Claim Was Untimely Under Limitations Period in Employment Agreement

Yesterday, the federal Sixth Circuit Court of Appeals affirmed summary judgment in favor of an employer on a claim brought by a former marine employee under USERRA. Oswald v. BAE Industries, Inc. No. 11-1119 (6th Cir. 5-16-12). The plaintiff alleged that he had been fired in September 2007 -- almost three years before he filed suit -- on account of his military service in Iraq. The employer contended that he was terminated in an economic reduction in force and moved to dismiss on the grounds that the plaintiff’s employment agreement required all employment-related claims to be brought within 180 days (or six months). The plaintiff was terminated before USERRA was amended in 2008 by the Veterans Benefits Improvement Act to preclude any statute of limitations defense. 38 U.S.C. § 4327(b). He argued that the general four-year statute of limitations applied and that his employment agreement could not reduce it under 38 U.S.C. § 4302(b), which limits the reduction of any rights under USERRA. However, the Court found that § 4302(b) only applied to protect substantive rights and not procedural rights, such as statutes of limitations. Therefore, the plaintiff’s employment agreement was valid and limited his right to file suit to the six months following his termination.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.