April 24, 2025

The aerospace and defense industry operates in a complex regulatory environment in which labor and employment law is continuously evolving. Recent developments relating to the Uniformed Services Employment and Reemployment Rights Act (USERRA), the National Labor Relations Board (NLRB), noncompete agreements, and the Service Contract Act (SCA) present significant compliance challenges for employers. Understanding these changes is critical for businesses to mitigate legal risks and adapt to shifting regulatory expectations.

UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT

USERRA provides several key protections for service members in their civilian employment:

• Anti-discrimination and anti-retaliation provisions – Unlike other employment laws that apply a three-part McDonnell Douglas burden-shifting framework, USERRA uses a step analysis. Initially, the employee must establish a connection between military status and an adverse employment action. If that burden is met, the employer must then demonstrate that the action would have occurred even if the employee had not served in the military.
• Unpaid military leave provisions – Employees are entitled to unpaid leave for up to five cumulative years. Recent amendments have expanded coverage to include state-funded National Guard call-ups for disaster response and certain FEMA workers.
• Reemployment rights under the escalator principle – Returning service members must be reemployed in the position they...

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