Servicemembers being called to active duty may have concerns regarding the financial impact of active duty military service.  The following information may be helpful:

The Soldiers' and Sailors' Civil 
Relief Act of 1940 (SSCRA)

What is it?
The SSCRA was passed by Congress to protect men and women from worrying about civil lawsuits and pre-existing debts while they were in uniform defending the United States.

Who is covered?
Persons entering or called to active duty military service are protected under the SSCRA, as are reservists and the National Guard. A servicemember may be on active duty in peacetime as well as in time of war or other national crisis. Further, active duty includes training activities such as boot camp.

In addition to providing direct relief to military personnel, the SSCRA also provides relief for military dependents who may face such problems as eviction or foreclosure proceedings.

What does it do?
Under the SSCRA, servicemembers may qualify for any or all of the following:

• Reduced interest rate on mortgage payments

• Reduced interest rate on credit card debt

• Protection from eviction if rent is less than $1,200

•  Delay of all civil court actions (i.e., bankruptcy, foreclosure or divorce proceedings)

What else do I need to know?

• SSCRA protection begins on the date of entering active duty or the date a member of a reserve component is ordered to report for military service, and usually terminates within 90 days after date of discharge from active duty.

• SSCRA debt protections apply only to those debts (including mortgages) incurred before entry into service for servicemembers on active duty. Debts incurred after entry into service are not protected.

• The SSCRA sets an interest cap of 6% on all covered debts.

Is there any other practical advice for me?

• Servicemembers should be prepared to prove a date of receipt for their military orders.

• Financial protections under the SSCRA can hinge on the concept of whether military service ‘materially affects’ the servicemember’s legal rights or obligations. This means that if a court were involved in the matter, the court would compare the servicemember’s financial condition prior to entry into active duty with his or her financial condition on active duty. Servicemembers should be prepared to demonstrate this through such items as salary and leave statements.

• Some provisions of the Act are automatically applied, but those involving debt payments require written notice to the lender of the intent to claim the 6% cap.

• Servicemembers seeking information concerning the applicability of the Act to their individual situation should be encouraged to seek legal counsel from their unit or installation legal assistance offices.

Where else can I get information on the SSCRA?
You may find additional information on the Defense Department's Web site.

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)

What is it?
Enacted in October 1994, USERRA provides reemployment protection and other benefits for veterans and employees who perform military service. It clarifies the rights and responsibilities of National Guard and Reserve members, as well as their civilian employers.

What does it do?

• The law ensures that members of the uniformed services are entitled to return to their civilian employment upon completion of their service;

• They should be reinstated with the seniority, status, and rate of pay they would have obtained had they remained continuously employed by their civilian employer;

• The law also protects individuals from discrimination in hiring, promotion, and retention on the basis of present and future membership in the armed services;

• It also prohibits employers from actions of workplace reprisal or retaliation against anyone who exercises USERRA rights or anyone who assists in the exercise of those rights.

Who is covered?

• USERRA applies to all employers in the United States, regardless of the size of their business.

• It protects part-time positions, unless the employment is for a brief, non-recurring period and is not expected to last indefinitely or for a significant period.

• USERRA does not protect independent contractors and others considered to be self-employed.

How do you qualify?

• To qualify for reemployment rights after military service, the following eligibility requirements must be met:

• Servicemember must have left a civilian job;

• Provided notice that they were leaving to perform military service;

• The cumulative period of service must not exceed five years (limited exceptions apply);

• Released from service under honorable or general conditions;

• Reported back to work or applied for reemployment within time constraints prescribed by law.

What else do I need to know?
USERRA clearly establishes that reemployment protection does not depend on the timing, frequency, duration, or nature of an individual's service. USERRA clarifies that while an individual is performing military service, he or she is deemed to be on a furlough or leave of absence and is entitled to the non-seniority rights accorded other individuals on nonmilitary leaves of absence, including family and medical leave.

For More Information

Links to more information regarding the Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA) and the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA): 

• Defense Department

• Department of Labor Veteran's Information

• Employer Support of the Guard and Reserve