From our folks at Military.com
Traditionally, members of the nation’s veterans service organizations have rendered the hand-salute during the national anthem and at events involving the national flag only while wearing their organization’s official head-gear.
The National Defense Authorization Act of 2008 contained an amendment to allow un-uniformed servicemembers, military retirees, and veterans to render a hand salute during the hoisting, lowering, or passing of the U.S. flag.
A later amendment further authorized hand-salutes during the national anthem by veterans and out-of-uniform military personnel. This was included in the Defense Authorization Act of 2009, which President Bush signed on Oct. 14, 2008.
