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Federal Register / Vol. 86, No. 208 / Monday, November 1, 2021 / Rules and Regulations
This rule updates the naming of current offices within the Office of the Secretary of Defense OSD, provides current information on service points of contact, and removes previous language pertaining to Federal Government employers to more succinctly clarify employer responsibilities to petition the respective Military Service of Ready Reserve members that may have a conflict with their employment prior to a military mobilization. These changes highlight how a civilian employer, based on their capability and capacity during either normal or extenuating circumstances such as the ongoing COVID19 response, petitions a Military Service on behalf of a Ready Reserve employee who occupies a key position within a company or occupies a position where military mobilization would create an extreme personal or community hardship. Employers are encouraged to assess the internal capabilities of their own positions and the organic capacity to sustain emergency manpower needs prior to a military mobilization which can produce an accurate listing of what they consider key positions to their organization.
Comments and Responses On Monday, December 28, 2020 85
FR 8423784243, the DoD published an interim final rule titled Screening the Ready Reserve for a 60-day public comment period. No public comments were received and this rule is being finalized with no changes from the published in interim final rule.

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Regulatory Analysis Executive Order 12866, Regulatory Planning and Review and Executive Order 13563, Improving Regulation and Regulatory Review Executive Orders 12866 and 13563
direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distribute impacts, and equity.
Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The final rule is not a significant regulatory action under Executive Order 12866 and has not been
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reviewed by the Office of Management and Budget.
Costs DoD believes the economic impact to civilian employers is minimal, estimating a cumulative total of $11K
across all employers nationwide.
Employers are already required to identify employees who are Ready Reserve members. The cost to employers of screening is already imbedded in their HR processes. The estimated costs if an employer submits a petition to a Military Service is calculated below and will vary based on the automation of human resource processes and the number of employees of an organization who are Ready Reserve members with critical skills. Ready Reserve members are already required to be screened by their respective Military Service per 10
U.S.C. 10149 and to work with their employers to address any concerns. The benefit of screening to the employer is to ensure those with critical civilian skills are identified in order to prevent conflicts between the emergency manpower needs of civilian and military activities during a mobilization.
The following describes how the estimated sum total of $11K was derived using existing costs to project costs of a petition. Using data from the U.S.
Bureau of Labor Statistics, U.S. Census, DoD Total Military Strength report, and the DoD Status of Forces survey, less than 0.3 percent of the U.S. population is in the Reserve, including the National Guard, with 51 percent employed by the public Federal 36 percent, State 9
percent, or Local 6 percent. There were 1,020,156 Military Service members in the Ready Reserve as of March 2020 and over 782,000 of those members are estimated to have civilian employment. Approximately 0.3 percent of the 782,000, or 2,346 members, may be identified as key civilian employees and may require a petition. The 2019
median hourly wage for an HR
professional or manager is $34.92 an hour. The cost to screen one employee as part of an onboarding process questionnaire or through an annual recertification process, which is estimated at less than 10 minutes or $5.82, is already imbedded in their HR
processes and thus not included here.
The cost to prepare a petition on one employee is estimated at 2 hours, or $69.84. Applying a more appropriate and realistic planning factor of 0.3

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percent to reflect key positions in civilian organizations reflects a projected annual cost, collectively from all employers, of $11,095.
Cost Benefit Analysis Assumptions and Sources It should be noted, not every Ready Reserve member in a company would be considered in a key position and therefore, a petition would not be needed on every member. The estimated cost presented encompasses all 1,020,156 Ready Reserve members and a 0.3 percent planning factor.
Assumptions in cost calculation include: U.S. population: 329,648,880
as of May 14, 2020, source: https
www.census.gov/; Ready Reserve:
1,020,156 as of March 31, 2020, source:
Total Military Strength report obtained from the Defense Manpower Data Center from each Military Service HR system of record; Percent of U.S. population in the Ready Reserve Reserve/U.S.
population: 0.0030947 or 0.3 percent.
Based on these data points, a projected 0.3 percent of employers in the country employ a Ready Reserve member. The Bureau of Labor Statistics at the end of March 2020 reported a U.S. working population of 155,167,000 with 16,294,000 working office/admin human resources/HR. Applying the projected 0.3 percent of employers with Ready Reserve members HR0.3
percent reflects 48,882 HR employees to address Ready Reserve members for their employer. With a median salary for HR Manager/Specialist of $34.92/hour, an annual screening is estimated to take 10 min Rate/6 or $5.82 and to prepare a petition package to take 2 hours Rate2 or $69.84. Only the petition calculation is include as the annual screening is already imbedded in HR
processes.
Data from 2018 DoD Status of Forces Survey reflects the following breakdown of principal civilian employment before most recent activation: Federal Government 36 percent; State government 9 percent; Local government 6 percent; Private/public company 43 percent; Non-profit 3
percent; Self-employed 2 percent; and Family business/farm/unemployed 1
percent. The below table reflects the costs of the 48,882 HR employees who would be preparing petitions on the Ready Reserve members in their organization.

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