NFIB

Help For Small Business Owners With Reservist Employees
09/26/2001

President Bush has called 35,000 military reservists to duty to respond to the worst terrorist attacks in U.S. history, leaving many small business owners wondering how to deal with sudden employee absences.

"Unfortunately, the law does not differentiate between small and large employers when it comes to military leave," said Lt. Cmdr. Mark Shelley, a national ombudsman for the Employer Support of the Guard and Reserve (ESGR).

Under the Uniformed Services Employment and Re-employment Rights Act (USERRA), employers must allow reservists up to five years off if they are called to service. Though not required to pay the person during the time they're gone, the owner must provide a job for them when they return. The position provided should be equal to one they would have if they had remained continuously employed.

Small business owners who provide healthcare insurance for their employees are required to continue providing it for the first 30 days of absence. After that, COBRA insurance must be offered to the employee, if the business qualifies for COBRA.

Reservist employees wondering if they will be included in the 35,000 Americans who will be called should contact ESGR or the commanding officer of their local reserve units.

"The No. 1 thing for small businesses owners to do is talk to their employees or contact the commanding officer," says Shelley. "That person will be able to provide a lot of information and keep business owners informed as to what is happening."

Small business owners worried that they cannot survive without reservist employees may qualify for a low-interest loan from the Small Business Administration (SBA). A Military Reservist Economic Injury Disaster Loan (MREIDL) provides up to $1.5 million, if the reservist employee is essential to the success of a business' daily operations.

"The loss of a key person--even for a short time--can devastate any small company. Small businesses sometimes fail when such an employee is called away to military service," said SBA Administrator Hector V. Barreto. "This program will provide economic support for those businesses, which in some cases are the major source of jobs in those communities."

Find your local ESGR ombudsman online at www.esgr.org or by calling (800) 336-4590. For more information on the SBA loans, go to www.sba.gov/disaster/mreidlall.txt.

Do you expect any military action to affect your workforce? Are you or your employees in the reserves? Email your story to speakout@nfib.org.