Report State Employment Policies for Veterans with Disabilities

Introduction

State legislatures have enacted a variety of policies to help veterans find and sustain civilian employment after discharge from the military. Many of these initiatives are designed to ease the path into employment for veterans with disabilities.

Veterans with disabilities can encounter various obstacles in finding and keeping jobs, such as translation of military education and training, a lack of understanding or knowledge of disability-related rights and responsibilities and mistaken assumptions regarding their abilities and disposition. Employers and policymakers at all levels of government often play a role in facilitating this population’s path into the labor market.

The COVID-19 pandemic has made these efforts all the more important as evidence suggests that veterans continue to face underemployment and diminished economic opportunity. In particular, post- 9/11 veterans, younger veterans and Black veterans are experiencing higher levels of unemployment than veterans generally.

As the nation continues to cope with newly emerging COVID-19 variants, states are focusing on economic recovery, bolstering employment, improving health care access and general assistance for their citizens.

In particular, the pandemic has presented significant financial challenges for veterans and their families, which often intensify mental health and substance use issues that can interrupt employment, good health and overall quality of life, while sometimes bringing veterans in contact with the criminal justice system.

At the federal level, the Department of Veterans Affairs is assessing these pandemic impacts on military veterans through survey data analysis to more proactively care for and address chronic illness and mental health that continue to challenge many veterans. Additionally, people experiencing the long-term impacts of COVID may be contributing to a rise in the number of people with disabilities who may require workplace accommodations in future years.

Relative to veterans, states are attempting to integrate and connect the various programs and initiatives related to job training, apprenticeships and preventing employment discrimination. In addition, efforts continue to create comprehensive approaches to the provision of services across the spectrum, so the needs of veterans are met not only for employment, but also for housing, education and health and mental health services.

Significant progress has been made at the state level in recent years to lower barriers and find better approaches to employing people with disabilities. One such effort is “Work Matters: A Framework for States on Workforce Development for People with Disabilities,” which is among the collaborations undertaken as part of the State Exchange on Employment & Disability, a unique state-federal initiative funded by the U.S. Department of Labor’s Office of Disability Employment Policy.

This report focuses on state employment policies and programs for veterans with disabilities, many of which supplement and enhance efforts by the federal government. The report provides background and context on demographics and employment for veterans with disabilities, followed by several state policy options to support those entering or remaining a part of the civilian workforce. The policies include both those applicable to all military veterans and those specific to veterans with disabilities.

Policies include veterans bills of rights, mental health and veterans employment, veteran employment preference, career development and job placement, employer certification and recognition, apprenticeships and on-the-job training, employer tax credits, occupational licensing, career-specific programs, veteran-owned businesses, preventing employment discrimination, female veteran programs and paid sick leave.

Demographics

According to the latest data from the U.S. Census Bureau, 17.4 million veterans live in the U.S. today, making up 6.9% of the population. Almost one-third of these veterans have a service-connected disability.

Veterans are predominantly male, though the number of female veterans has been rising since the 1980s. Veterans are also, on average, older than nonveterans, reflecting the characteristics of those who served during World War II, the Korean War and the Vietnam era, all of whom are now over 55 years old. Roughly 43% of veterans alive today served during the first Gulf War era (August 1990 through August 2001) or in military engagements since the 9/11 attacks. Of those, 35% served during the Vietnam War. Recent veterans are more racially and ethnically diverse than previous generations.

Veterans are more likely to have a disability than nonveterans. In 2020, 4.7 million veterans, or 26%, had a service-connected disability, according to the U.S. Bureau of Labor Statistics. That number is 40% for post-9/11 veterans. Among all veterans with a disability, 27% had a rating of less than 30%, while 44% had a rating of 60% or higher. Disability ratings above 60% are more common among recent veterans. Disability ratings and the likelihood of a veteran seeking treatment at the U.S. Department of Veterans Affairs both vary by race and ethnicity. As of 2014, 16.9% of minority veterans who used VA health care had a service-connected disability rating. Disabled American Indian and Alaska Native veterans had the highest rate of VA health care use at 79.9%, followed by Black or African American veterans at 76.2%. New numbers are expected in July 2022.

Veterans live in every state and community in the nation. Three states—California, Florida and Texas— have more than 1 million veterans. Another nine states have more than 500,000—Georgia, Illinois, Michigan, New York, North Carolina, Ohio, Pennsylvania, Virginia and Washington. Veterans make up 10% or more of the adult population in three states—Alaska (10.7%), Montana (10.3%) and Virginia (10.0%).

What Are Service-Connected Disability Ratings?

When an active-duty service member acquires a disability or aggravates an existing disability, they become eligible for disability compensation, a tax-free monetary benefit provided by the U.S. Department of Veterans Affairs. The benefit amount is dependent upon a “service-connected disability rating”—a percentage assigned to specific medical conditions intended to reflect the extent to which a service member’s ability to work is impaired. These ratings range from 0% to 100% and round off to the nearest 10%, with higher percentages correlating to more severe conditions. Service-connected disability ratings are calculated by individual caseworkers assigned to each claim. In 2020, the 10 most common service-connected disabilities among new compensation recipients were, in order: tinnitus, limitation of flexion (knee), lumbosacral or cervical strain, scars/burns (2nd^d degree), limitation of motion of the arm, hearing loss, limitation of motion of the ankle, post-traumatic stress disorder, paralysis of the sciatic nerve and migraine.

Employment Context

Almost all veterans age 25 and older have graduated from high school, and more than one-third completed at least some college or received an associate degree. A slightly smaller share of veterans than nonveterans held a bachelor’s degree or higher.

The veteran unemployment rate peaked in 2010 at 8.7%, ranging up to 12% for post-9/11 veterans. While rates had been steadily declining, down to 3.1% in 2019, the COVID-19 pandemic resulted in veteran unemployment topping 11.9% in April 2020, compared to 14.8% for the general population. While the average veteran unemployment rate over the past two years was relatively low (6.5% in 2020; 4.4% in 2021), numbers remain high for recent veterans (7.3% in 2020) as well as veterans of all service periods with a disability rating of at least 60% (9.6% in 2020).  

According to the U.S. Bureau of Labor Statistics, veterans with a service-connected disability rating of less than 30% were more likely to be in the labor force than those with a rating of 60%  or higher (53.8 % vs. 41.2%).

Veteran unemployment rates also varied across the country in 2020, ranging from 2.7% in Nebraska to 11.3% in Michigan.  Twenty states and D.C. had veteran unemployment rates above the national average.

Regardless of when they served, many veterans with a service-connected disability work in the public sector. In 2020, 31% of employed veterans with a service-connected disability worked in federal, state or local government compared to 19% of veterans with no disability and 14% of nonveterans.

State Policy Options

States have demonstrated a strong commitment to easing transitions into civilian employment for veterans and creating policies to sustain such employment. While many laws apply broadly to veterans, others recognize the unique challenges that veterans with disabilities face in the labor market and target approaches to this population. This section of the report profiles several areas of public policy emphasis by states relating to veteran employment.

Veterans Bills of Rights

A trend in the several years in state legislatures is the introduction of Veterans Bill of Rights legislation. Several states have considered and/or adopted this approach. In 2015, California enacted SB 112 that “proclaimed the rights of veterans in the state of California, including, among others, that veterans have the right to be treated with dignity, understanding, and respect, and have the right to housing, education, job training, and physical and mental health services.” Introduced bills in 2020-2021 in Georgia, Illinois, Kentucky, and Maine seek a comprehensive state-coordinated effort across multiple agencies addressing a wide spectrum of services and benefits for veterans, with a focus on employment. This is based on a model created by a group of state legislators seeking better ways to help veterans. Following the model, the Illinois legislation requires the Department of Veterans' Affairs to do several things including:

• Increase loans and technical assistance to small business concerns owned and controlled by veterans or service-disabled veterans.
• Increase veterans’ and their families’ access to health care coverage and services, using navigators. The navigators would also help identify mental health benefits, directing them to services for post-traumatic stress disorder, depression, and suicide prevention.
• Take steps toward preventing veteran suicide.
• Implement a strategy to end veteran homelessness within three years.
• Recognize military training and experience toward licensing.
• Help veterans at public universities receive college credit.
• Require the Department of Commerce and Economic Opportunity to annually review apprentice, training, and other vocational programs focused on providing job training and placement to returning military service members and veterans. It will also use labor force data to direct veterans to in-demand job fields. 

Veterans’ bills of rights existing in Massachusetts and Missouri before the newer model was introduced include standards related to assistance and counseling that is to be received from veterans service officers, public employment preference and fair, equal, respectful and timely treatment in service provision.

Mental Health and Veterans Employment

The federal government handles most mental health needs for veterans through the Department of Veterans Affairs. However, states provide a variety of services designed to complement and connect the dots with federally provided services, particularly recognizing the important link between employment and improved mental health.

Access to and retention in jobs is inseparable from the issue of good mental health. Having a job is fundamental to financial security and without it, money problems can exacerbate underlying mental health issues for veterans, many caused by combat-related injuries such as post-traumatic stress disorder (PTSD) and traumatic brain injury. Profiled below are two states that provide a variety of services to assist veterans, including those with disabilities, with employment while providing wrap-around social, health and mental health services. Several states are also addressing veteran suicide prevention.

In 2021, Nevada set up a military-to-civilian transition program by enacting AB 22. It provides military servicemembers with facilitated access to earned benefits as they transition to civilian life. The Nevada Department of Veterans Services is charged with creating this program to provide veterans with information and resources to obtain higher education, career training, small business start-up, housing, physical and mental health care, treatment for sexual trauma and other benefits to equip them for success in civilian life. Called the Nevada Transition Assistance Program (NVTAP), it will operate in coordination with Department of Defense transition centers across Nevada. NVTAP includes classroom and online training and is designed to support veterans, active duty, Nevada National Guard and Reserve as well as families in their transition from the military.

A significant effort in South Carolina (HB 4724 enacted in October 2020) established a committee to study veteran homelessness, unemployment, job placement, incidence of PTSD, access to basic human services, and other issues affecting South Carolina veterans. Key language in the committee’s report states:

The fundamental insight of this study is that today's veteran does not face a small number of individual risks, but a complex environment in which multiple risk factors interact to produce a cumulative level of risk greater than the sum of the individual factors. Unemployment, as an example, often drives a veteran into homelessness; being homeless creates insurmountable barriers to employment. In the same manner, substance abuse can lead to incarceration; incarceration, in turn, increases the risk of unemployment, homelessness and suicide. 

The current model for serving veterans has many deficiencies, according to the report, necessitating three actions: 

• Expand South Carolina's vision for veteran care to encompass the social determinants of health by having the South Carolina Department of Veterans' Affairs develop a state-wide network of organizations that provide services to veterans and by expanding and standardizing the scope of services provided at county offices to address the full range of veteran needs.
• Integrate efforts to aid veterans across the state by developing a collaborative coalition of organizations (federal, state, non-profit and private sector) which serve veterans, operating with enough central direction to allow for the efficient use of resources and enough decentralized control to allow for local solutions to the unique challenges facing veterans.
• Objectively measure the effectiveness of efforts to serve veterans by tasking the South Carolina Department of Veterans' Affairs to identify, measure and report specific performance measures that can be used to determine and track trendlines within the South Carolina veteran population along all social determinants of health.

Veteran Employment Preference

Preference policies provide a uniform method by which special consideration is given to qualified candidates seeking employment. Veterans’ preference laws recognize the sacrifice and value of those who have served in the armed forces by helping position them more competitively in the hiring process. While all states provide some form of preference to veterans applying for a public position, private employer preference is relatively new.

Public Employment

All 50 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands award preference to veterans in hiring for public positions. This is typically achieved by adding points to examination scores that determine the ranking of candidates. It can also take the form of interview requirements, veteran-only positions and hiring goals.

For positions that require an examination, at least 37 states, the District of Columbia and Guam have procedures to prefer veterans with disabilities over veterans and nonveterans. In New Jersey, veterans with disabilities are given the highest preference for civil service employment. Eligible candidates who pass an examination are placed at the top of open competitive employment lists, ahead of veterans and nonveterans, regardless of their scores. To qualify for the state’s disabled veteran preference, the veteran must (1) have served on active duty during a qualifying war era, (2) received an honorable discharge, and (3) have a disability rating of at least 10%. This preference also applies to the spouse of a disabled veteran, the surviving spouse of a disabled veteran, the surviving spouse of any veteran who died in service, and the parent of any veteran who died in service. In Arizona, individuals with disabilities receive an additional five points and veterans with disabilities receive 10 points. Wyoming provides an additional five percentage points for veterans and surviving spouses, 10 points for veterans with disabilities. If the public department does not use a numerical scoring system, the advantage must be reasonably equivalent (2017 SF 53).

Florida Senate Bill 922, enacted in June 2021, expands the benefit of a veteran’s preference by authorizing the state or a local government to waive a postsecondary educational requirement for a position of employment. The education waiver applies to honorably discharged veterans, as well as current members of the National Guard or Reserves. The bill also increases points used for appointment and retention determinations, up to 20 points for a veteran with a service-connected disability.

In some states, veterans with disabilities may be considered for employment without having to compete or take an examination. This is the case in Minnesota, where eligible veterans must have a disability rating of 30% or greater. Oklahoma provides a similar exemption, with the caveat that veterans complete a one-year probationary period before acquiring permanent employee status.

Texas has taken a multi-pronged approach to increase employment of veterans in state government. The Texas Military Veterans’ Full Employment Act of 2015 sets a minimum 20% veteran hiring goal for each state agency. To meet this goal, the law requires that employers interview a certain number of qualified veterans for each open position—one veteran when the total number of applicants interviewed is six or less, and 20% veterans when more than six interviews are planned. Agencies may also designate certain positions as veteran-only and hire a veteran from within the agency without advertising the position. In addition, state agencies of a certain size must designate an employee to serve as a veteran’s liaison.

At least eight other states—Kansas, Kentucky, Maine, Maryland, Minnesota, Nevada, Oregon and Tennessee—have an interview requirement for veteran candidates. Nevada’s law requires employers to interview every veteran with a service-connected disability who is qualified for a particular position.

Maryland law authorizes an appointing authority in the State Personnel Management System to select a disabled veteran for a vacant position on a noncompetitive basis and interview only those disabled veterans who express interest (2017 HB 1466).

School districts in South Dakota provide a preference to veterans in appointment, employment and promotion. A veteran who has a service-connected disability is given preference over a non-disabled veteran (2015 SB 90).

Wisconsin has a hiring goal specific to veterans with disabilities. AB 441, enacted in 2016, established the Wisconsin Veterans Employment Initiative and set up the Council on Veteran Employment. The initiative is designed to increase the number of veterans and veterans with disabilities employed in state government. The council helps both large and small agencies achieve a 1% hiring goal for veterans with disabilities—7% to 9% for veterans overall—depending on the size of the agency.

Private Employment

While all states grant some form of employment preference to veterans in the public sector, private employers had been hesitant to favor veterans due to long-standing federal laws that prohibit discrimination in hiring. Title VII of the Civil Rights Act of 1964 prohibits veterans’ preference in employment as unlawfully discriminatory due to the potential disparate impact on women. However, Section 11 of the act allows special rights or preferences to be granted to veterans if they are authorized under federal, state or local law.

Thirty-nine states have enacted legislation allowing private employers to give preference to veterans in hiring, promotion and retention decisions. Of these, 16 states extend the preference to the spouse of a disabled veteran or to the surviving spouse of a deceased veteran.

Washington was the first state to pass a private veterans preference law in 2011 with HB 1432. The law applies to honorably discharged veterans, surviving spouses and spouses of veterans who have a service-connected permanent and total disability, stating clearly that such preferences are voluntary. Other state laws contain similar language, varying slightly in which individuals are covered by the preference. Alaska HB 2, passed in 2018, authorizes employers to grant preference in hiring to veterans and members of the National Guard.

At least five states—Arkansas, Kentucky, Nebraska, Ohio and Texas—maintain a registry of employers that have adopted a veterans preference policy. Veterans in Texas can view an online list of more than 130 employers separated by locality.

The U.S. Chamber of Commerce also started Hiring Our Heroes in 2011. The initiative helps veterans, transitioning service members and military spouses find meaningful work. As of March 2021, the 10th anniversary of its founding, more than 31,000 veterans and military spouses have found jobs through Hiring Our Heroes events, and more than 2,000 companies have committed to hire 710,000 people. Of those commitments, there have been more than 505,000 confirmed hires.

Career Development and Job Placement

States operate a variety of programs to prepare veterans to enter or reenter the civilian workforce through personalized assistance and sharing of resources at the local, state and federal levels.

In Tennessee, veterans with disabilities can take advantage of one-on-one services provided by the Department of Labor and Workforce Development. Staff members help veterans develop a plan of action for long-term employment, which includes career guidance. In addition, the department offers all veterans priority access to new job listings, resume assistance and interview coaching.

The California Transition Assistance Program (CalTAP), created by 2014 AB 1509, builds on the U.S. Department of Defense’s transition program by providing state-specific information and resources so veterans can maximize their benefits. Launched in 2017, CalTAP offers support and assistance to veterans of all eras as their needs change over time. The program is divided into the following five pathways: core curriculum, education, employment, entrepreneurship and service providers. The employment pathway prepares veterans to enter or reenter the civilian workforce through training on a variety of topics, from choosing a career to evaluating a job offer. In addition to personal marketing, job search and interview techniques, veterans also learn about state and federal jobs and apprenticeships. With support from the California Governor’s Military Council, CalTAP is currently offered at more than 20 military installations in the state.

A similar program in Virginia reached nearly 109,000 transitioning service members and spouses in fiscal year 2020. The Virginia Transition Assistance Program (VTAP) provides peer-to-peer support to new veterans and their families and makes referrals to address specific needs, mainly about employment, education and entrepreneurship. VTAP offers networking events, hiring events, resume reviews and an electronic newsletter of job postings.

The Nevada Veterans Advocate (NVA) program casts a wider net by empowering citizens, not necessarily with military experience, to educate veterans in their community about earned benefits and opportunities. This extends the ability of Veteran Service Officers to reach a population of over 212,000 veterans, particularly in rural areas. Prospective advocates must complete a free course covering 20 topics, including several that affect employment for disabled veterans. Those who complete the course receive a certificate and participate in local events sponsored by the Department of Veterans Services.

The Texas Legislature recently codified (2019 HB 696) a program operated by the state’s workforce commission. The Texas Veterans Leadership Program employs veterans as research and referral specialists and asks them to seek out other veterans in need of assistance related to employment, education and/or medical care.

States have also created online portals that veterans can use to access a range of benefits and services, including employment opportunities, all in one location. The Alabama Veterans Network (AlaVetNet) was established in 2013 and rechartered by the governor in 2017. The network is a partnership of 19 state agencies and several nonprofit veteran groups. Its searchable database of resources is organized by need and location, allowing users to quickly identify service providers in their region. Each of the resources listed on the website have been vetted for legitimacy and relevance. 

New Hampshire is also sharing information directly with veterans and advocates through a monthly report detailing the state’s workforce needs projections. HB 1582 enacted in July 2020, requires the Department of Employment Security to release workforce projections for veterans by industry, job type, geography and needed credentials.

Employer Certification and Recognition

Employer certification programs facilitate the exchange of information between the state and employers, with the goal of linking veterans with businesses looking to hire.

Virginia was one of the first states to adopt this approach. In 2013, the General Assembly passed  SB 829, codified as Va. Code §2.2-2001.2, establishing a program that came to be known as Virginia Values Veterans (V3). The V3 Program, a free training and certification program to help employers implement best practices in recruiting, hiring and retaining veteran employees. To date, almost 82,000 veterans in Virginia have been hired by 1,400 V3 certified companies.

North Carolina is also focusing on the demand side of the employment equation with its NC4ME program. NC4ME, which stands for North Carolina for Military Employment, is a public-private partnership created by the governor in 2015. Its members include workforce offices, veteran service organizations and military installations. Together, they leverage resources and technology to connect veterans with a coalition of employers who are trained and ready to hire military talent. In the past five years, the program has provided training to 872 human resource managers and arranged 3,513 interviews for veteran candidates. In addition, the official state labor exchange system, NCWorks Online, has several features for veterans, including a 24-hour “Vet Hold” on each new job posting, meaning only veterans can apply within the first 24 hours.

Other states are attempting to recognize employers that hire veterans. In 2017, the Texas Workforce Commission, the Texas Veterans Commission and the governor’s office initiated the We Hire Vets program to recognize employers whose workforce includes at least 10% military veterans. Similar programs exist in at least three other states—Michigan, Nevada and Utah. Apprenticeships and On-the-Job Training

Apprenticeships and On-the-Job Training

At least 15 states—Colorado, Florida, Maine, Michigan, Minnesota, Missouri, Montana, North Carolina, Oregon, New Hampshire, New Jersey, Texas, Virginia, Washington and Wisconsin—have programs that help veterans gain internships, apprenticeships and training. States have employed a variety of approaches, including direct training funding, promotion of existing apprenticeship programs, tax credits for employers and industry-specific incentives.

At least four states enacted legislation in 2020 and 2021 that would increase focus on apprenticeships and other training activities to help military veterans. 

In 2021, Texas enacted Senate Bill 337 relating to the award of grants by the State Workforce Commission to facilitate the participation of certain veterans and military personnel in apprenticeship training programs. The commission will award grants to one or more nonprofit organizations that facilitate participation in apprenticeship training programs by veterans and servicemembers transitioning into civilian employment.  

House Bill 1582 in New Hampshire, passed in 2020, requires the adjutant general to review expanded training and apprenticeship programs for providing job training for veterans and to submit a report detailing the findings. The bill also allows for low or free tuition at colleges and universities for children of veterans who are totally and permanently disabled, along with establishing programs to aid veterans' access to employment, housing, health care, and college degrees, among other provisions.

Michigan enacted House Bill 5396 in 2020 to appropriate $250,000 for an award to a national, nonprofit program that connects National Guard, reserve, retired, and transitioning active-duty military service members with skilled training and quality career opportunities in the construction industry. The grant funding is used to recruit and assist veterans to transition into apprenticeship programs in the state.

New Jersey established a five-year Apprentice Assistance and Support Services pilot program through 2020 SB 3067, codified as N.J. Rev. Stat § 34:15D-6.2. The program addresses two key barriers to successful apprenticeship completion: lack of reliable transportation and insufficient affordable and high-quality daycare, by providing stipends to eligible individuals participating in apprenticeships.

Veterans are eligible for the program along with displaced workers, and people with disabilities, among others.

Washington specifically assists veterans with disabilities through an internship program in the Department of Transportation. The program, created by 2007 Senate Bill 5242, assists veterans with disabilities by matching them with appropriate jobs within the department that use their military skill sets, or that would teach them new skills. The jobs may include, but are not limited to, engineering, construction trades, logistics and project planning. 

A new resource from the Partnership on Inclusive Apprenticeships is Veterans Spotlight: Creating Jobs for Vets through Apprenticeship. This webpage helps employers and veterans learn about inclusive apprenticeships for former service members, including those with service-connected disabilities.

Employer Tax Credits

Employer incentives are another way states can increase employment of veterans with disabilities. At least 11 states—Alabama, Alaska, Delaware, Maryland, Massachusetts, Mississippi, Montana, New York, Utah, Washington and West Virginia—currently provide an income tax credit to private employers that hire one or more veterans. Employers typically may claim the tax credit for the first and second taxable year in which they employ one or more qualified veterans. Credits range from $1,000 to $15,000 for each veteran hired. Some states limit the duration of the tax credit, as evidenced by the five states and the District of Columbia where credits have expired in recent years.

Three states—Alaska, New York and West Virginia—offer a larger tax credit to employers who hire veterans with disabilities. Each state calculates the tax credit differently. In New York, employers who hire a veteran with disabilities may claim 15% of total wages paid during his or her first year of employment, up to $15,000. Employers who hire a veteran who is not disabled can claim 10% of wages up to $5,000. In Alaska, employers may claim an additional $1,000 ($3,000 total) for each disabled veteran hired, provided he or she was discharged in the past 10 years. A veteran who is not disabled must be hired within two years of discharge for the employer to claim a tax credit. Finally, West Virginia calculates the tax credit based on the employee’s disability rating. The credit is equal to the percentage of an employee’s disability multiplied by the first $5,000 in wages earned.

IIn 2021, Maryland repealed the Hire Our Veterans Tax Credit and expanded the existing Job Creation Tax Credit to cover the hiring of a qualified veteran (SB 186). The amount of the credit is equal to $4,000 for each qualified veteran hired and $6,000 if the veteran is employed at a facility located in a revitalization area. A small business can claim an income tax credit of $2,500 for each qualified veteran hired. 

IIn addition to state incentives described above, the federal Work Opportunity Tax Credit (WOTC) is available to private employers and certain nonprofit organizations. The WOTC incentivizes hiring of individuals in nine target groups, including veterans with disabilities, who have faced significant barriers to employment. Employers can receive between $2,400 and $9,600 in tax credits for hiring a veteran with disabilities, provided he or she was hired within one year of discharge or release from active duty or was unemployed for at least six months in the year ending on the hiring date. The Consolidated Appropriation Act of 2021 extended the WOTC until Dec. 31, 2025.

Occupational Licensing

Despite significant legislation on the subject, many states still face challenges with occupational licensing regulations that do not account for a veteran’s training, education and experience. Failing to recognize this experience can lead veterans to incur additional costs to obtain a license or discourage them from entering the workforce altogether. Policy options to address these barriers to employment include consistent recognition of military skills, fee waivers, expedited review and exemption from licensure.

Consistent Recognition of Military Skills

While many state laws direct licensing boards to recognize military training, education and experience toward meeting requirements for licensure, boards are often left with considerable discretion to interpret a veteran’s transcript and determine whether their experience is “substantially equivalent” to state standards.

Maine added flexibility to its licensing system in 2017. HB 1096 grants the director of the Office of Professional and Occupational Regulation the authority to modify licensing requirements of boards on a case-by-case basis for military applicants. In a similar oversight measure, Washington lawmakers added a reporting requirement in 2017. SB 5359 requires several agencies to file reports to the Legislature and Washington State Military Transition Council. They must also appear annually before the joint committee on veterans’ and military affairs to report on implementation of occupational licensing laws for veterans and military spouses.

Fee Waivers

The total cost of licensure is composed of exam fees, application fees, initial licensure fees, background check fees and sometimes other miscellaneous fees as outlined in statute. At least five states—Florida, Michigan, Nebraska, Nevada and Wisconsin—have enacted legislation to waive some of these fees for veteran applicants.

Nebraska enacted LB 112 in 2019. This waives fees for initial credentials for low-income individuals, military families and young workers, except for the cost of fingerprinting and a criminal background check. The law defines military families to include active-duty service members, military spouses, honorably discharged veterans, spouses of such veterans, and un-remarried surviving spouses of deceased service members.

Expedited Review

It can take time for license applications to be reviewed and approved. At least 12 states—Arkansas, California, Iowa, Kansas, Kentucky, Maryland, Nevada, New Mexico, North Carolina, Ohio, Tennessee and Texas—have enacted legislation requiring licensing agencies and boards to expedite the process for veterans.

In Kansas and Kentucky, boards must process applications within 60 and 30 days, respectively, for veterans who hold an equivalent license in another state, the District of Columbia or any territory. Maryland law requires each health occupations board to issue a license to a qualified veteran within 15 days of receiving the application.

Licensing Exemption

Some states are taking licensing reform a step further by exempting military members and spouses from licensure requirements. In 2018, Utah passed SB 227, which allows active-duty service members and their spouses to practice a number of occupations in the state without requiring a distinct Utah state license, as long as they hold a current license in good standing in another state and pay all applicable fees. The law does not apply to veterans.

Arkansas enacted similar legislation in 2019, revised in 2021 in the form of SB 78. The law provides automatic licensing for active-duty service members, veterans and spouses who hold a valid license with similar scope of practice issued by another state, territory or district of the United States. Automatic licensure is defined as the “granting of occupational licensure without an individual’s having met occupational licensure requirements provided under this title or by the rules of the relevant occupational licensing entity.” Licensing entities may submit proposed rules for an expedited process rather than automatic licensure if desired. The definition of veteran includes several different discharge classifications, excluding only those with a dishonorable discharge.

Career Specific Programs

Several states have enacted legislation creating a   path for veterans, including veterans with disabilities, to enter certain professions, often those to which a military skill set is regarded as most applicable or where critical needs exist. These include agriculture, health care and cybersecurity.

Agriculture

The average age of the American farmer is increasing, and states and the federal government hope military veterans can help reverse the trend. Not only is farming a source of income in rural areas, it can have therapeutic value for veterans struggling with post-traumatic stress and traumatic brain injury. At least five states—Connecticut, Massachusetts, South Carolina, West Virginia and Wisconsin—have a dedicated program to support veterans entering a career in agriculture.

West Virginia was the first state to do so, establishing the Veterans and Heroes to Agriculture Program in 2014. In passing HB 469, lawmakers recognized the importance of agriculture to the state’s economy and its benefits to the health and welfare of returning veterans, particularly those with service-connected disabilities. The program offers education and training, as well as financial assistance to purchase equipment and materials. In addition to traditional farming, the program also supports veterans interested in beekeeping, aquaculture, fiber-providing animals and various niche crops.

West Virginia is also one of at least 20 states that have partnered with the Farmer Veteran Coalition to promote their Homegrown by Heroes label, which informs consumers that agricultural products were produced by veterans.

Health Care

Many active service members are health care specialists. Despite a wealth of knowledge and experience, some have difficulty obtaining comparable licenses when they return home. Virginia launched the Military Medic and Corpsmen (MMAC) Program in July 2016 to address this challenge. The program, created by HB 825, provides a path to employment for recently discharged veterans who served as Army combat medics, Navy/Coast Guard corpsmen or Air Force medical technicians. Qualified veterans can practice and perform skills under physician supervision at hospitals across the commonwealth while they obtain civilian medical credentials. For those veterans who are not MMAC-qualified, the program can open doors to other non-clinical employment opportunities in the health care field, including information technology and management. In Fiscal Year 2020, the program hired 101 veterans with healthcare-related training and experience for work in partner health care systems. Louisiana established a similar program through HB 185 in 2017.

At least eight states—Arkansas, Illinois, Indiana, Kentucky, Maine, Massachusetts, New Jersey and Ohio—have made it easier for returning veterans to be licensed as emergency medical technicians (EMTs) and paramedics. For example, Ohio lawmakers created an expedited veterans’ paramedic certification program in 2015 for applicants with military training.

Another 21 states—Alabama, Colorado, Delaware, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, North Dakota, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia and Wyoming— have joined a multi-state compact for the Emergency Medical Services profession. The compact includes provisions related to licensing for veterans, service members and their spouses.

IIn addition, Maine established the Health Care Employment for Military Veterans Program with 2018 HB 921. The law requires the state Department of Labor to create a “military-to-civilian crosswalk” that compares the training and experience required to perform military health occupational specialties with the state requirements for similar civilian occupations. The information contained in the crosswalk will aid occupational licensing boards and postsecondary education institutions as they identify gaps and work to reduce barriers to entry.

Cybersecurity

Cybersecurity is a fast-growing, lucrative field with an urgent demand for many of the skills developed in the military. Four states—Florida, Massachusetts, North Carolina and Virginia—have enacted legislation to encourage employment of veterans in this field.

In 2016, North Carolina lawmakers set aside $500,000 to fund a two-year cybersecurity apprenticeship program for honorably discharged veterans who have at least a 10% disability rating. The program is a collaboration involving the state Department of Information Technology and other state agencies, the private sector and several educational institutions. Participants receive a salary and benefits over two years, culminating in an examination for professional certification.

North Carolina is also a partner in CyberVetsUSA, along with Arizona, Maryland and Virginia. The industry-led initiative provides free training, certification and career resources to veterans, transitioning service members, National Guard and Reservists, and their spouses. Over 300 veterans completed the program in 2018.

In addition, Florida veterans can fill entry-level cybersecurity analyst positions in as little as eight weeks through the program named New Skills for a New Fight. The program is offered through Cyber Florida, created by HB 1501 (2014), with support from JPMorgan Chase.

Veteran-Owned Businesses

A number of states assist veterans and veterans with disabilities in their pursuit of business enterprises. In 2020, two states expressed support for veteran-owned business through resolutions: 

• Senate Resolution 702, adopted in 2020 by South Dakota declared, “…that the Senate hereby calls for statewide recognition of military veteran entrepreneurship and its ameliorating effect on veterans, veterans' families, and South Dakota's economy.”
• A house resolution in Louisiana, 2020 HR 44b,  urged and requested “the secretary of state to work with the Department of Revenue, the Department of Economic Development, and the office of state procurement to create a central electronic repository of information, resources, training, and opportunities that small, rural, minority, female, and veteran entrepreneurs can access when registering their businesses with the state.”

Missouri enacted a loan guarantee program for veteran-owned businesses in 2018. HB 1503 provides direct state-guaranteed small business loans to Missouri military veteran entrepreneurs. A “boots-to-business” program must be completed upon receipt of such a loan. Boots to Business is an entrepreneurship training program for veterans and their spouses that provides an overview of business ownership as a career vocation. Illinois enacted similar legislation in 2016 with Senate Bill 324.

Specific to veterans with disabilities-owned businesses, Missouri also sets a goal of awarding 3% of all state contracts for the performance of any job or service to qualified service-disabled veteran business enterprises.  

Another example of a program that promotes the business goals of veterans with disabilities is in California. The state Department of General Services operates the Disabled Veteran Business Enterprise Program. Started in 1989, its goal is to award 3% of all state contracts to businesses owned by certified disabled veterans. According to the California Department of Veterans Affairs (CalVet) website, “The program facilitates the integration of disabled veterans into California’s entrepreneurial economy because of their incomparable sacrifices made when they answered their Country’s call.” The underlying statute requires the California Department of Veterans Affairs to promote the program and track results through a program advocate.

IIn 2017, Kentucky enacted HB 161, which requires executive branch agencies to promote and publicize opportunities for service-disabled veteran-owned businesses to contract for goods and services and actively engage and counsel veterans’ organizations on contract opportunities. Agencies that use their Small Purchase Authority shall solicit at least one quote from a service-disabled veteran-owned vendor or business.

The Iowa Targeted Small Business Procurement Act requires all state agencies and departments to set annual procurement goals from certified targeted small businesses, which include disability-owned businesses. It also requires community colleges, area education agencies, and school districts to establish a procurement goal from such businesses of at least 10% of their annual procurement budget, including construction but not utility services. Of these total procurement goals, an additional goal must be set to procure at least 40% from service-disabled veteran-owned businesses.

Kansas enacted HB 2356 in 2017, which revises provisions of the state’s bidding process as it relates to the definitions of “certified business” and “individual with a disability.” A contract may be awarded to a certified business (or a disabled veteran business) whose bid is not more than 10% greater than the lowest competitive bid. A certified business must conduct most of its operations in Kansas, have at least 10% of its workforce be individuals who have disabilities, contribute at least 75% of their health insurance premium costs, and not pay a subminimum wage, which is allowable under federal law

In Minnesota, the Office of State Procurement (OSP) operates a program for Targeted Group, Economically Disadvantaged and Veteran-Owned small businesses. Targeted Group small businesses must be certified as such by OSP to participate in the program. To be certified as a Targeted Group small business, the business must be at least 51% owned by a woman, racial minority, or person with a substantial physical disability. By being certified with the OSP, the business may also be eligible to participate in similar state-funded programs operated by the Minnesota Department of Transportation (Mn/DOT) and several Metropolitan Agencies

Oklahoma HB 2365 (2021) created the Oklahoma Supplier Diversity Initiative for among others, service-disabled small businesses. 

Oregon’s Governor Kate Brown issued Executive Order 18-03 (2018), promoting diversity and inclusion opportunities for Oregon minority-owned, women-owned, service-disabled, veteran-owned and emerging small businesses. The executive order promotes economic equity in public contracting by directing all state agencies to increase the percentage of state-funded contract dollars that are awarded and paid to certified firms.

Virginia Governor Ralph Northam issued Executive Order 35 (2019) that includes service-disabled veterans in the state’s set-aside and other procurement programs promoting equity in state contracting.

Preventing Employment Discrimination

Many returning veterans face a subtle form of discrimination as they search for employment. A recent survey of employers found employers may be hesitant to hire a veteran due to challenges in translating military skills into civilian terms. Some may perceive veterans as rigid or formal, while others were concerned about future deployment of members of the guard or reserve. Another difficulty in acclimating to corporate culture.

One protection important to people with disabilities, including veterans with disabilities, is equal employment opportunity (nondiscrimination) protection. In 1990, Congress enacted the landmark Americans with Disabilities Act (ADA). Title I of the ADA protects individuals with disabilities from discrimination on the basis of disability. Most states have enacted laws similar to the ADA. These protection policies help ensure that individuals with disabilities can access and succeed in the workplace.

At least eight states—California, Connecticut, Florida, Indiana, Louisiana, New Jersey, Virginia and Washington—have enacted legislation making it unlawful for an employer to discriminate against a prospective employee based on the individual’s status as a veteran.

One form of discrimination is the failure to provide reasonable accommodations. According to the ADA National Network, “A reasonable accommodation is any change to the application or hiring process, to the job, to the way the job is done, or the work environment that allows a person with a disability who is qualified for the job to perform the essential functions of that job and enjoy equal employment opportunities.” Studies by the Job Accommodation Network (JAN) have found that 56% of all accommodations cost nothing to implement, with the cost of those that do averaging $500.

In the public sector, at least two states—Massachusetts and Minnesota—operate a centralized accommodation fund (CAF). At least two states—Alaska and Vermont—provide centralized expertise on accommodations for use by agencies. Oklahoma authorizes telework as a reasonable accommodation. Examples of accommodations vary widely but might include reserved parking, equipment adjustments and a flexible work schedule. California (AB 313 (2021), requires state agencies to develop policies for individuals with disabilities, to address requests for reasonable accommodations. Many private companies also operate centralized accommodation funds to help create a disability-inclusive workplace that ultimately facilitates a better bottom line through increased innovation and productivity.

Paid Sick Leave

At least eight states—Arkansas, California, Florida, Illinois, Maine, Minnesota, New York and Tennessee—allow veterans employed by the state to take a period of paid leave to attend scheduled medical appointments and receive treatment for a service-connected disability. This helps a veteran with a disability to keep a job when ongoing medical treatment is needed.

For example, California law entitles each state employee with a military service-connected disability rated at 30% or more to an additional 96 hours of paid sick leave to undergo medical treatment, including mental health treatment, related to the disability. The law applies to veterans as well as members of the National Guard or federal military reserves who are called to active duty and sustain an injury because of their service. The credit is applied on the effective date of the employee’s disability rating decision or on the first day he or she begins, or returns to, employment after active duty. It remains available for use for the following 12 months. 

Tennessee lawmakers passed HB 1578 in 2021 providing 36 hours of yearly leave for a state employee who is a veteran with a service-connected disability of 30% or more. Unused leave may not be carried over to the following year. Other states allow between 32 and 48 hours of leave, with no qualification as to disability rating. 

Appendix: State Statute Citations by Policy Option