Ward v. Shelby County: Jury Must Decide Validity of USERRA Waiver

Sedric Ward, an Army reservist since 1987, began working for the Shelby County Jail in 1998. Like many reservists, he frequently took leave to attend drills, training, and deployments. In 2013, Shelby County conducted an audit that reviewed different types of paid leave taken by employees. Ward was not flagged during the audit, but the Sheriff’s Office asked the General Investigations Bureau to conduct a criminal investigation focused on service member employees. As part of that investigation, Ward was directed to produce years of military leave documentation. He had difficulty retrieving the records quickly, though he eventually provided some documents.

In 2014, a grand jury indicted Ward for theft, alleging fraudulent use of 36 days of military leave. He was booked and detained in the same jail where he worked. The Sheriff’s Office suspended him without pay and demanded further records within three days. Ward could not meet the deadline, and the County terminated him for disobedience. A year later, Ward provided records that substantiated his military service on the days in question, leading prosecutors to dismiss the charges.

Settlement and later lawsuit

Ward appealed his termination to the Shelby County Civil Service Merit Board. While the appeal was pending, the County proposed a settlement: Ward could return to work in a probationary capacity for six months, receive three weeks of back pay, and withdraw all claims related to his termination. Ward consulted an attorney and signed the settlement agreement in August 2016. A month later, he notified the County he no longer wished to return to the Sheriff’s Office.

In 2020, Ward filed suit under the Uniformed Services Employment and Reemployment Rights Act (USERRA), alleging his termination and the investigation violated his statutory protections. The district court concluded that the release in the 2016 settlement agreement did not cover USERRA claims. After trial, a jury ruled in Ward’s favor and awarded more than $1.5 million in damages. The district court entered judgment accordingly.

Sixth Circuit review

On appeal, Shelby County argued that Ward had released his USERRA claims in the 2016 settlement. The Court of Appeals for the Sixth Circuit reviewed the matter de novo. It interpreted the settlement’s language—releasing “any and all claims whatsoever” arising from Ward’s termination—as encompassing his USERRA claims. The court disagreed with the district court’s reasoning that a release must specifically identify USERRA claims.

The Sixth Circuit explained that federal law allows servicemembers to release USERRA claims, provided the agreement offers rights or benefits more favorable than those guaranteed under the statute. The court emphasized that whether the agreement was more beneficial depends on the servicemember’s judgment at the time of signing, not on outcomes achieved years later in litigation. It found that Ward had been represented by counsel and aware of his rights when he entered the settlement, though his testimony suggested he acted under financial strain.

Because the record left questions about whether Ward considered the settlement more beneficial than pursuing a USERRA claim, the appellate court concluded the issue was for a jury to decide. It vacated the district court’s judgment and remanded for further proceedings.

Final outcome

The Sixth Circuit vacated the $1.5 million judgment in Ward’s favor and remanded the case, holding that a jury must determine whether the 2016 settlement agreement effectively waived Ward’s USERRA claims.

Help with USERRA and employment rights

If you have faced employment challenges related to your military service, Whitcomb, Selinsky PC handles cases involving USERRA protections, wrongful termination, and settlement disputes. Reach out to schedule a consultation and learn how our team can assist with your claim.