USERRA and State Law

[Guest slt]

I understand from Section 4302(a) of USERRA that USERRA does not supersede, nullify or diminish any Federal or State law that establishes a right or benefit that is more beneficial to, or is in addition to, a right or benefit provided under the specific provisions of USERRA.

My question is this: What if you have an employer who sponsors an ERISA plan and the state statute provides that continuation coverage must continue as long as the employee is out on military leave? USERRA would only grant the individual 18 months. Suppose an employee is out for 4 years.

In this case, does the state law apply so that the employee gets to elect continuation coverage for the entire 4 years? Looking at 4302(a), you would think yes, but what about COBRA? COBRA, as a federal statute, in my opinion, would preempt the state law. If preemption did not work here, then any state health or welfare laws having anything to do with military service would ALWAYS preempt an ERISA rule. How can this be? Has anyone had this issue come up?

As always, thanks for any comments.