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Third Circuit Finds Employees Entitled to Paid Leave Under USERRA

 

Travers v. Federal Express Corporation - Third Circuit Court of Appeals


Facts:  Gerard Travers (“Travers”), who worked for Federal Express Corporation (“FedEx”), served in the U.S. Navy and Reserves.  During his tenure at FedEx, Travers completed his Reserve duties during leave from work.  Although FedEx provides employees with paid leave for time spent at jury duty, for illness, and bereavement, paid leave is not offered for military leave.

Travers filed suit against FedEx on the grounds that the Uniform Services Employment and Reemployment Rights Act of 1994 (“USERRA”) entitled him to paid leave for military duty.  FedEx countered on the grounds that since it did not provide paid leave for military duty to any employee, it had not treated service members any differently than the rest of its employees.  The District Court dismissed the lawsuit on the grounds that USERRA did not provide for paid leave for military duty as paid leave was not a “right and benefit” under USERRA.  Travers subsequently appealed to the Third Circuit Court of Appeals.

Holding:  A three judge panel of the Third Circuit Court of Appeals began its analysis with a look at the language and history of USERRA.  As the Court noted, “…USERRA does not allow employers to treat service members differently by paying employees for some kinds of leave while exempting military service…”  In fact, the Court recognized that USERRA applies to benefits generally provided by an employers, such as paid leave…regardless of distinctions between the type of paid leave (such as sick leave or bereavement leave or military leave.)  Of note, Judge Matey emphasized that “since employers cannot ‘provide’ military leave, paid or otherwise, to non-military employees, there is no way to deny the benefit in a neutral way.”

Consequently, the Court recognized that as USERRA had a “long history of protecting the jobs and accompanying benefits of Americas called to protect our common defense”, there was sufficient justification to remand the case back to District Court.

Judgment:  The Third Circuit Court of Appeals held that based upon the language of history of USERRA, a reasonable interpretation of the statute could be found that paid leave is a “right and benefit” to be provided for employees for military leave (including Reserve duty.)

The Takeaway:  Note, this decision is in harmony with a ruling from the Seventh Circuit Court of Appeals, White v. United Airlines Inc., in which that Court refused to dismiss a lawsuit filed by a pilot (who was a reservist) that sought paid military leave under similar circumstance as this case.  Something tells me that this will not be the last we hear of a case with a similar set of facts pending in another circuit. Stay tuned.

Majority Opinion Judge:  Circuit Judge Matey

Date:  August 10, 2021

Opinion:  https://www2.ca3.uscourts.gov/opinarch/202703p.pdf

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