VOW to Hire Heroes Act of 2011 Law

On November 21, 2011 President Obama signed into law the VOW legislation to encourage the hiring of military veterans.

Key provisions of interest to Employers:

• Requires military individuals separating from services to participate in the Transition Assistance Program (TAP). This program is currently voluntary and now is mandatory for all military personnel.
• Directs the federal government to enter into agreements to provide job training assistance that provides veterans with the education, training, and services necessary to transition to employment.
• Provides a new hiring credit called the Returning Heroes and Wounded Warrior Credit as an incentive to hire unemployed veterans. The VOW Act provides a credit of 40% of the first $6,000 in wages (up to $2,400 max) for employers that hire veterans unemployed for at least 4 weeks and credit of up to 40% of the first $14,000 of wages (up to $5,600 max) for veterans who have been unemployed for at least 6 months.
• Changed the tax code to allow 501 (c) tax exempt organizations to claim credits on the employer portion of FICA tax.

 Reference: SHRM, 12/2/2011. President Signs Into Law the ‘VOW to Hire Heroes Act of 2011’