Brian Perez, a captain in the U.S. Marine Corps Reserves, was terminated the day he returned to work at Uline, Inc., in Orange County, following a one-week military leave. Uline presented Perez with a severance agreement, which stated that Perez would receive six weeks’ salary in exchange for releasing the company from all claims, including but not limited to those arising under state or federal statutes. Perez signed the agreement and was paid according to its terms.
Perez then sued Uline and three managers, contending that he was fired because he took a military leave protected by the federal Uniformed Services Employment and Reemployment Rights Act (USERRA). He argued that this amounted to wrongful termination in violation of public policy and breach of an oral employment contract. Uline argued that Perez’s lawsuit had to be dismissed because he released all claims when he signed the severance agreement and accepted payment under it.
USERRA Claim Not Waived
Now a California appeals court has ruled that Perez’s claims based on USERRA can go forward.1 The court explained that USERRA prohibits discrimination against employees because of their service in the uniformed services and prohibits denial of reemployment or retention because of military service. What’s more, said the court, USERRA plainly states that a contract may not limit the statute’s protections. Thus, the court concluded, the severance agreement Perez signed could not waive claims based on USERRA violations.
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Lessons for Employers
This decision is an important reminder for employers about the protections employees who take military leave have—and that USERRA violations can’t be remedied by having an employee sign a release waiving his or her right to sue. Thus, as more service members return from active duty in Iraq and Afghanistan, it is increasingly pressing for employers to understand their USERRA obligations. For more information on how to avoid disputes over military leave, read the exclusive California Employer Advisor Special Report, Managing Leave and Reinstatement for Military Reservists.
1Perez v. Uline, Inc., Calif. Court of Appeals (Dist. 4) No. G036939, 2007