A federal court has
ordered Pepsi bottling company PepsiAmericas to pay $83,000 for denying an Army
reservist a military pay differential the company had promised to its employees
in the Army Reserves. The court explained that even though the Uniformed Services
Employment Rights and Responsibilities Act (USERRA) doesn’t require employers
to pay wages to an employee on military duty, once an employer adopts a pay
differential policy, USERRA protects the employee’s right to that differential
pay.
In this case, driver
Kevin Koehler was on military leave from his PepsiAmericas job for six months. Under
the PepsiAmericas policy, he was entitled to a military pay differential of
more than $16,000, but the company refused to pay him. The court awarded Koehler
double damages. It also tacked on $50,000 in punitive damages because the
company deposited the differential wages into Koehler’s bank account but then withdrew
the funds without his authorization, telling Koehler that it had “changed its
mind.” Information on your obligations under USERRA is available online at www.dol.gov/vets/programs/userra/main.htm.
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