‘‘(C) If the court determines that the employ-
er’s failure to comply with the provisions of this 
chapter was willful, the court may require the em-
ployer to pay the person an amount equal to the 
greater of— 
‘‘(i) the amount referred to in subpara-
graph (B) as liquidated damages; or 
‘‘(ii) $20,000. 
‘‘(2)(A) Any compensation awarded under subpara-
graph (B) or (C) of paragraph (1) shall be in addition 
to, and shall not diminish, any of the other rights and 
benefits provided for under this chapter. 
‘‘(B) In the case of an action commenced in the name 
of the United States for which the relief includes com-
pensation awarded under subparagraph (B) or (C) of 
paragraph (1), such compensation shall be held in a spe-
cial deposit account and shall be paid, on order of the At-
torney General, directly to the person. If the compensation 
is not paid to the person because of inability to do so with-
in a period of 3 years, the compensation shall be covered 
into the Treasury of the United States as miscellaneous 
receipts.’’. 
(b) INJUNCTIVE RELIEF.—Section 4323(e) of such 
title is amended by striking ‘‘may’’ and inserting ‘‘shall’’. 
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(c) PUNITIVE DAMAGES AUTHORIZED FOR CERTAIN 
STATE AND PRIVATE EMPLOYERS WHO VIOLATE CHAP-
TER 43 OF TITLE 38, UNITED STATES CODE.—Section 
4323(d) of title 38, United States Code, is amended by 
adding at the end the following new subparagraph: 
‘‘(D) In the case of an employer with 15 or 
more employees, the court may require the employer 
to pay the person punitive damages, if the court de-
termines that the employer’s failure to comply with 
the provisions of this chapter was done with malice 
or reckless indifference to the federally-protected 
rights of the person.’’. 
(d) CLARIFICATION OF RIGHT OF ACTION UNDER 
USERRA.—Section 4323 of title 38, United States Code, 
is amended— 
(1) in subsection (b), by striking paragraphs 
(2) and (3) and inserting the following new para-
graph (2): 
‘‘(2) In the case of an action against a State 
(as an employer) or a private employer by a person, 
the action may be brought in a district court of the 
United States or State court of competent jurisdic-
tion.’’; 
(2) by redesignating subsection (j) as sub-
section (k); and 
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(3) by inserting after subsection (i) the fol-
lowing new subsection (j): 
‘‘(j)(1)(A) A State’s receipt or use of Federal finan-
cial assistance for any program or activity of a State shall 
constitute a waiver of sovereign immunity, under the elev-
enth amendment to the Constitution or otherwise, to a suit 
brought by an employee of that program or activity under 
this chapter for the rights or benefits authorized the em-
ployee by this chapter. 
‘‘(B) In this paragraph, the term ‘program or activ-
ity’ has the meaning given the term in section 309 of the 
Age Discrimination Act of 1975 (42 U.S.C. 6107). 
‘‘(2) An official of a State may be sued in the official 
capacity of the official by any person covered by paragraph 
(1) who seeks injunctive relief against a State (as an em-
ployer) under subsection (e). In such a suit the court may 
award to the prevailing party those costs authorized by 
section 722 of the Revised Statutes (42 U.S.C. 1988).’’. 
SEC. 3. EXEMPTION FROM CHAPTER 1 OF TITLE 9, UNITED 
STATES CODE, OF CLAIMS BY MEMBERS OF 
THE UNIFORMED SERVICES FOR EMPLOY-
MENT AND REEMPLOYMENT RIGHTS AND 
BENEFITS. 
Section 4322 of title 38, United States Code, is 
amended by adding at the end the following: 
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‘‘(g) Chapter 1 of title 9 shall not apply with respect 
to employment or reemployment rights or benefits claimed 
under this subchapter.’’. 
SEC. 4. EFFECTIVE DATE. 
The amendments made by this Act shall apply with 
respect to an action commenced after the date of the en-
actment of this Act. 
Æ 
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