Under the demonstration project, VETS is authorized to investigate claims  filed against federal executive agencies by servicemembers with social  security numbers ending in even numbers; its role in handling other  nonfederal USERRA claims remains unchanged. Request for Referral of Claims from VETS to OSC

Under USERRA and the demonstration project, when VETS is  unsuccessful in resolving servicemembers’ claims, DOL is to notify  servicemembers who filed claims against federal executive branch  agencies that they may request to have their claims referred to OSC or file  directly with MSPB. At DOL, data limitations affected DOL’s annual report to  Congress. We also found that DOL did not consistently notify claimants  concerning the right to have their claims referred to OSC for further  investigation or to bring their claims directly to MSPB if DOL did not  resolve their claims. Data from VETS’s database showed that  from the start of the demonstration project through September 30, 2006,  DOL received 202 claims. Additionally, during our review of a random sample of 54 VETS case files  to assess the reliability of VETS’s data, we found the closed dates in  VETS’s database did not match the date contained in the closure letter to  the claimant in 22 of 52 claims reviewed. Because DOL reports annually to Congress on the number and percentage  of claims it closed within 90, 120, and 365 days, such inaccuracies in the  number of claims reported and the closed dates also affect the quality of  information reported to Congress on the time it takes VETS to process  claims. Citing our preliminary  findings, VETS officials required each region to revise its guidance  concerning the notification of rights. We assessed the reliability of selected data elements in OSC’s case  tracking system in an earlier report. First, two  agencies now receive and process claims with two different models for  investigating USERRA claims from federal executive branch employees—a  nationwide approach by VETS that gives much authority to individual  investigators in resolving and closing claims and a centralized approach by  OSC that has a single individual entering claims into the case tracking  system, providing guidance, and reviewing all claims. Second, both DOL  and OSC officials have said that since the demonstration project began,  cooperation and communication concerning USERRA claims has  increased, in turn raising awareness of the issues related to  servicemembers who are federal executive branch employees. Finally,  technological enhancements have occurred during the demonstration  project. For example, an enhancement to VETS’s database enables the  electronic transfer of information between agencies. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) describe the Department of Labor’s (DOL) and  Office of Special Counsel’s (OSC) policies and procedures for processing  federal employees’ Uniformed Services Employment and Reemployment  Rights Act of 1994 (USERRA) claims under the demonstration project; (2)  identify the number of federal employees’ USERRA claims that DOL and  OSC received and the outcomes of these claims, including average  processing times; and (3) identify changes to federal employees’ USERRA  claims’ processing since the demonstration project began. Objective 2: Identify the Number of Federal Employees’ USERRA Claims that DOL and OSC Received and the Outcomes of These Claims, Including Average Processing Times

To identify the number of federal employees’ USERRA claims that DOL  and OSC received and the outcomes of these claims, including average  processing times, we obtained information on all the USERRA claims filed  against federal executive branch agencies that DOL and OSC received  from February 8, 2005—the beginning of the demonstration project— through September 30, 2006. To determine the number of unique claims opened by  VETS, we  removed claims opened prior to the demonstration project;  removed claims transferred to OSC after being opened in VETS’s  database (i.e., those with odd social security numbers and allegations  of related prohibited personnel practices);  removed duplicate filings (i.e., those opened within 3 days of another  claim brought by the same claimant and subsequently closed, while the  original claim remained open);  removed one veterans’ preference claim identified by VETS as being  inadvertently opened as a USERRA claim; and    combined and counted as one claim original and reopened claims  where both were opened during the demonstration project. From February 8, 2005, through September 30, 2006, for 16 claims in the  VETS’s database, claimants asked VETS for referral to OSC.
Why GAO Did This Study

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) protects the employment and reemployment rights of federal and nonfederal employees who leave their employment to perform military service. The Department of Labor (DOL) investigates and attempts to resolve claims filed by servicemembers, and if not successful, DOL is to inform the federal claimants that they may request to have their claims referred to the Office of Special Counsel (OSC). Under a demonstration project, from February 8, 2005, through September 30, 2007, OSC is authorized to receive and investigate certain USERRA claims, with DOL continuing its investigative role for others. As required by Pub. L. No. 108-454, this report describes the (1) processes, (2) outcomes, and (3) major changes during the demonstration project. GAO selected a random sample of cases from DOL's and OSC's databases and traced data for selected elements from the electronic files to source case files.

What GAO Found

Since the start of the demonstration project on February 8, 2005, both DOL and OSC have had policies and procedures for receiving, investigating, and resolving USERRA claims against federal executive branch employers, with DOL investigating the ones from claimants with even-number social security numbers, and OSC those from claimants with odd social security numbers as well as those with related allegations of prohibited personnel practices. Under the demonstration project, DOL's process for investigating USERRA claims remains unchanged: DOL uses a nationwide network of over a hundred investigators from offices in every state. Under the demonstration project, OSC has instituted a centralized approach for investigating USERRA claims, with a single office of about half a dozen investigators and attorneys in its Washington, D.C., headquarters. Data for reporting outcomes were not reliable at either agency. At DOL, inaccurate data were included in the agency's annual report to Congress, which could adversely affect Congress's ability to assess how well federal USERRA claims are processed and whether changes are needed in the future. GAO also found that DOL did not consistently notify claimants concerning the right to have their claims referred to OSC for further investigation or to bring their claims directly to the Merit Systems Protection Board. Citing GAO's preliminary findings, in December 2006, DOL officials required each region to revise its guidance regarding notifying claimants in the closure letter of their rights. GAO found that for the period of its review--February 8, 2005, through September 30, 2006--DOL received a total of 166 unique claims, although 202 claims were recorded as opened in DOL's database. Duplicate, reopened, and transferred claims accounted for most of this difference. During a review of a random sample of DOL's case files to assess the reliability of DOL's data, GAO found the closed dates in DOL's database, which it uses to report to Congress on the number and percentage of claims it closes within 90, 120, and 365 days, were not reliable. From the start of the demonstration project, through September 30, 2006, OSC received 269 claims and took an average of 115 days to process these claims. The closed dates in OSC's case tracking system were sufficiently reliable. Three primary changes have occurred in federal employees' USERRA claims' processing since the demonstration project. First, two agencies now investigate claims from federal employees using two different models for investigations. Second, both DOL and OSC officials said cooperation and communication between the two agencies on claims has increased under the demonstration project, in turn raising awareness of issues related to servicemembers who are federal employees. Finally, technological enhancements have occurred, including an enhancement to DOL's database enabling the electronic transfer of information between agencies, which began in October 2006.