What's Happening?
Several legislative developments in 2026 could impact the employment of military service members and their families. Key proposals include extending the Work Opportunity Tax Credit (WOTC) to military spouses, aimed at reducing their unemployment rate,
which is significantly higher than the national average. The Supporting Tours Across Years (STAY) Act seeks to limit unnecessary relocations of active-duty service members, potentially affecting recruitment and retention strategies. Additionally, the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act has strengthened protections under the Uniformed Services Employment and Reemployment Rights Act (USERRA), allowing for increased damages and legal fees in cases of violations.
Why It's Important?
These legislative changes could provide significant benefits to military families by improving employment opportunities and stability. For employers, the proposed tax incentives and compliance obligations may influence hiring practices and workforce management strategies. The focus on reducing relocations and enhancing employment protections reflects a broader effort to support military families, which could lead to increased retention and job satisfaction among service members and their spouses.
What's Next?
Employers should prepare for potential changes by reviewing their policies related to military leave, reemployment, and hiring practices. The U.S. Congress may further consider the STAY Act and other related legislation, which could lead to additional adjustments in compliance requirements and incentives for hiring military spouses. Employers may also benefit from engaging with the Department of Labor's SALUTE program for guidance on USERRA compliance.
