AELE LAW LIBRARY OF CASE SUMMARIES:
Employment & Labor Law for Public Safety Agencies
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Contracts, Consultants and Outsourcing
An association representing
city workers filed a lawsuit seeking an injunction against the city contracting
to outsource a number of city services, including jail operations, special
event safety, and building inspection. An intermediate appeals court upheld
the trial court's grant of a preliminary injunction. The injunction was
not premature, since the association members were in serious danger of
being terminated. That and the many layoff notices already sent out showed
that the association and its members would suffer greater harm if a preliminary
injunction were not granted than the city would if the injunction was issued.
The association had a possibility of prevailing, since a state statute
barred it from contracting with a private entity for "nonspecial"
services, and there was only existing statutory outsourcing authority for
two targeted areas--jail operations and administration of payroll services.
Costa Mesa City Employees' Ass'n v. City of Costa Mesa, #G045730, 209 Cal.
App. 4th 298, 2012 Cal. App. Lexis 971 (Cal. App. 4th Dist.).
Although Wisconsin sheriffs are not required
to bargain or arbitrate impasses that impact a sheriff's constitutional
duties, the staffing of an x-ray and metal detector security screening
station is not among those tasks. The sheriff was required to bargain the
replacement of full-time bargaining unit deputies with part-time special
deputies. Washington Co. v. Deputy Sheriff's Assn., #2008AP1210, 2009 Wisc.
App. Lexis 426 (2d Dist.).
Federal
court finds that the DEA breached its duty of fair dealing inherent in
an implied-in-fact contract with undercover informant SGS-92-X003, known
as the "Princess," by "failing to follow its own protocol
in sending her to Colombia." In 1995, the informant endured three
months in captivity in a windowless, dirt-floor room where she slept on
a straw mattress. Damages are to be computed in a separate proceeding.
SGS-92-X003 v. U.S., #97-579C, 2009 U.S. Claims Lexis 31 (2009).
Due to serious
overcrowding, the Governor had authority to declare an emergency and to
contract with out-of-state private prisons to handle the overload of inmates.
Doing so did not violate state constitution's civil service mandate. California
Correctional POA v. Schwarzenegger, #C055327, 2008 Cal. App. Lexis 832
(3rd Dist.).
A terminated municipal official was entitled
to collect severance pay, equal to nine months salary, that was negotiated
at the commencement of employment; it is not impermissible gift of public
property. If a contract is terminable at will, it does not unlawfully exceed
the term of office for the mayor. Vil. of Oak Lawn v. Faber, #1-06-2622,
2007 Ill. App. Lexis 1356 (1st App. Dist. 2007).
Wisconsin sheriff violated the state's bargaining
laws by outsourcing jail food preparation. "... the Sheriff's hiring
and firing of personnel to provide food service to the county jail is not
a time immemorial, principal, and important duty that characterizes and
distinguishes the office of sheriff, and as such, is not within the Sheriff's
constitutional powers." Kocken v. Wis. C-40, AFSCME, #2005AP2742,
2007 WI 72, 732 N.W.2d 828 2007 Wis. Lexis 400.
Under the Illinois Municipal Code, a Village
is forbidden from entering into a contract where the duration exceeds the
term of the mayor holding office at the time the contract is signed. Walters
v. Vil. of Colfax, #04-1287, 2006 U.S. Dist. Lexis 89539 (C.D. Ill. 2006).
[N/R]
Federal jury in Tucson awards a psychologist
and a therapist almost $2.9 million after finding that the former police
chief and others conspired not to renew their contract to provide counseling
services. Gilmartin v. City of Tucson, #4:00-cv-00352 (D. Ariz. 2006).
[2006 FP Nov]
Appeals court upholds a judgment against
a sheriff's dept. for copyright infringement. Management had installed
software at more computer stations than were licensed, and it was not a
defense that the total number of workstations that were able to access
the installed software at one time did not exceed the total number of licenses
purchased by the department. Wall Data Inc. v. Los Angeles Co. Sheriff's
Dept., #03-56559, 2006 U.S. App. Lexis 12100 (9th Cir. 2006).{N/R}
Indiana appellate court holds that town council
could not sign a contract with its police chief to terminate him only for
good cause -- because a state statute makes police chiefs at-will employees.
Taylor v. New Chicago, #45A05-0503-CV-156, 839 N.E.2d 212, 2005 Ind. App.
Lexis 2382 (2005). {N/R}
Rhode Island Supreme Court enforces a police
chief's three-year employment contract that was adopted shortly before
a new administrator took office. Kells v. Town of Lincoln, #04-239, 874
A.2d 204, 2005 R.I. Lexis 109 (2005). [2005 FP Sep]
The Federal Office of Personnel Management
has published a Rule that would allow would allow private sector information
technology management to be assigned to work in a federal agency, and federal
IT employees to work in the private sector. The Rule implements the E-Government
Act of 2002. Operation of Information Technology Exchange Program, 69 (10)
Fed. Reg. 2308, 5 CFR Part 370. {N/R}
Federal appeals court holds that an FBI informant
did not need to get pre-approval of his expenses before he is entitled
to claim reimbursement. The implicit approval by case agents and a prosecutor
was sufficient to satisfy contractual requirements. Forman v. U.S., #02-5117,
329 F.3d 837, 2003 U.S. App. Lexis 9490 (Fed. Cir. 2003). {N/R}
A divided Ninth Circuit allows two communist
defectors to sue the CIA for compensation allegedly owed them. Doe v. Tenet,
#01-35419, 2003 U.S. App. Lexis 10667 (9th Cir. 2003). {N/R}
Office of Management and Budget announces
the adoption of new bidding rules, designed to allow private businesses
to compete more for work that is currently performed by as many as 850,000
government employees. OMB Circular A-76, 71 (46) U.S. Law Week (BNA) 2762
(May, 2003). {N/R}
An Ohio city attorney, who was dismissed
without cause, cannot collect the remainder of a three-year contractual
fee. A lawyer has an ethical obligation not to bill for services not performed.
City of Moraine v. Lewis, #19402, 151 Ohio App.3d 526, 2003 Ohio 460, 784
N.E.2d 774, 2003 Ohio App. Lexis 430, 19 IER Cases (BNA) 1123 (2003). {N/R}
Employer violated Section 8(a)(5)
of the NLRA when it replaced union workers with independent contractors,
since the employer made the decision to do so prior to reaching an impasse
with union; the employer's plan to shift work away from union employees
was a mandatory bargaining issue, and the employer could not declare an
impasse, implement a unilateral change, and still bargain with union on
other issues. Naperville v. NLRB, #99-3634, 242 F.3d 744, 166 LRRM (BNA)
2712, 2001 U.S. App. Lexis 3363 (7th Cir. 2001). {N/R}
Terminating an in-house security service
and outsourcing the functions violated federal labor laws. Reno Hilton
and United Plant Guard Workers, #32-CA-15856, 1998 NLRB Lexis 822, 326
NLRB No. 154; affirming 1998 NLRB Lexis 404. [2000 FP 20-21]
N.H. Supreme Court overturns a decision to
outsource janitorial work and to terminate all of the janitorial staff.
Hillsboro Deering Sch. Dist. v. N.H. Pub. Empl. Lab. Rel. Bd., #97-147,
1999 N.H. Lexis 68, 737 A.2d 1098. [2000 FP 3]
An elected Illinois county official was not
entitled to a writ compelling the county to pay for computers used for
the purpose of performing statutory duties. Elected officials are required
to comply with competitive bidding and approval requirements under state
and local law. The fact the County Board President failed to include the
request on the agenda did not excuse compliance. Pucinski v. Co. of Cook,
#88441, 2000 Ill. Lexis 992. {N/R}
R.I. Supreme Court holds that use of inmate
labor to perform "bargaining unit" labor was not outsourcing
in violation of the labor agreement. AFSCME C-94 v. Rhode Island, #96-558,
714 A.2d 584, 1998 R.I. Lexis 223. [1999 FP 6]
California jury awards $388,330 to a newly-hired
battalion chief and $312,870 to an asst. fire chief, after the city outsourced
fire services to the county. Although both were hired by the county, they
lost seniority, benefits, and their staff assignments. Their suit alleged
breach of recruitment promises. Murphy v. Lam, #761479 (Orange Co. Super.Ct.
1998); settlement rptd. at 41 Law Rptr. (ATLA) 216. [1998 FP 148]
Federal appeals court rejects suit to preserve
a N.Y. police dept. Town Board could abolish the agency, and has legislative
immunity when doing so. Carlos v. Santos, 123 F.3d 61 (2d Cir. 1997). [1998
FP 131]
Illinois Supreme Court reverses a Labor Board
ruling that required a city to bargain with the firefighter's union before
contracting its ambulance calls to a private provider. Outsourcing is not
a "term and condition" of employment in Illinois. Belvidere (City
of) v. IL St. Lab. Rel. Bd., 181 Ill.2d 191, 692 N.E.2d 295, 1998 Ill.
Lexis 342. [1998 FP 116-7]
Alaska supreme court holds that a provision
in the chief's employment contract can waive and supersede employment rights
conferred by an ordinance. Ramsey v. Sand Point, 936 P.2d 126 (Alaska 1997).
[1998 FP 52]
New York Public Employment Rel. Bd. concludes
that a city did not violate its bargaining obligation by unilaterally subcontracting
fire dispatching duties to civilian personnel. Eighteen-year practice of
having fire firefighters perform dispatching function was insufficient
to establish exclusivity. Newburgh Firefighters and City of Newburg, N.Y.
PERC #U-15449, 29 NYPER (LRP) P3039. 1996 NYPER (LRP) Lexis 873. {N/R}
En banc panel in San Francisco upholds suit
to give pension and other benefits to workers that were hired as "independent
contractors." Status and duties, not labels, determines eligibility
for benefits. Vizcaino v. Microsoft Corp., 1997 U.S. App. Lexis 18869 (9th
Cir, en banc), citing Daughtrey v. Honeywell, Inc., 3 F.3d 1488 (11th Cir.
1993). A contrary decision is reached by a federal appeals panel in Virginia.
Clark v. E. I. DuPont, 1997 U.S. App. Lexis 321, 20 E.B.C. 2309 (Unrptd.
4th Cir.). [1997 FP 136-7]
California Supreme Court strikes down a statute
allowing a state agency to outsource work. Law violated a principal purpose
of the civil service provisions in the state's constitution. Prof. Engin.
v. D.O.T., 1997 Cal. Lexis 2308, 936 P.2d 473, 15 Cal.4th 543. Note: The
opinion cited cases in ten other states which restrict outsourcing: AL,
CO, LA, MI, NV, NY, OH, PA & WA. [1997 FP 83-4]
Arbitrator annuls mass termination of university
security officers and the outsourcing of the campus security function.
Temple Univ. and I.U.U.P.G.W.A., L-511, AAA 14-390-00997-96-R/K, 34 (1694)
G.E.R.R. (BNA) 1733 (1996). [1997 FP 35]
The county did not violate a bargaining agreement
by contracting with an outsource for temporary laborers or computer specialists.
It was "not a subterfuge to conceal an employer-employee relationship."
CSEA v. Westchester Co., 631 N.Y.S.2d 385, 1995 N.Y.App.Div. Lexis 9288.
{N/R}
California supreme court upholds a damage
suit for making a fraudulent inducement to a prospective employee. Lazar
v. Super. Ct. (Rykoff-Sexton), 12 Cal.4th 631, 909 P.2d 981 (1996). [1996
FP 83]
Federal court in Pennsylvania rules that
a city does not have the inherent power to give an employment contract
to a department chief. Shoemaker v. City of Lock Haven, 906 F.Supp. 230
(M.D.Pa. 1995). [1996 FP 67-8]
City that obtains contractual law enforcement
from the county is not an "employer" of an officer who is assigned
to that city. Gallardo v. Bd. Co. Cmsnrs., 881 F.Supp. 525 (D.Kan. 1995).
[1996 FP 28]
Illinois enforces severance pay agreement
even though law allowed the hiring authority the right to terminate its
chief executive at any time. Ewert v. Drexel Nat. Bank, 649 N.E.2d 487,
1995 Ill.App. Lexis 256. [1995 FP 99]
City could not downsize a fire station and
replace its firefighters and truck with an engine company from another
department under a mutual aid agreement. Reno, City of and I.A.F.F. Local
731, 101 LA (BNA) 126 (1993). [1994 FP 116]
Reform mayor and councilmen could abolish
police dept. and contract with county for law enforcement protection. Farnsworth
v. Town of Pinedale, 968 F.2d 1054 (10th Cir. 1992). [1993 FP 35-6]
Mayor's promise to reappoint person as chief
if he did not seek another position was unenforceable. Harris v. Johnson,
578 N.E.2d 1326 (Ill.App. 1991). [1992 FP 148-9]
State university was in violation of the
bargaining agreement in proposing to abolish its police force and contracting
with city for police services. W. Wash. Univ. v. Feder. of St. Empl., 793
P.2d 989 (Wash. App. 1990). [1991 FP 85]
Town police chief had implied authority to
arrange for stress counseling for a subordinate, thus obligating the municipality
for the payment of the psychologist's bill. Elam v. Town of Luther, 787
P.2d 1294 (Okla. App. 1990).
City council's renewal of chief's contract
before it expired violated public policy, and contract was unenforceable.
White v. Board of Selectmen of Holbrook, 27 Mass. App. 1117, 537 N.E.2d
173 (1989).
Federal appeals court allows civil rights
suit against city for abolishing its police dept. in a union dispute. Healy
v. Town of Pembroke Park, 831 F.2d 989 (11th Cir. 1987).
Town did not like bargaining with FOP, so
it abolished the police dept. and contracted with the sheriff for patrol
services. Federal and state courts rule this was an unfair labor practice
and a violation of the federal civil rights act. Healy v. Pembroke Park,
643 F.Supp. 1208 (S.D. Fla. 1986).
Bargaining contract on fire-police integration
supersedes state labor laws regarding working hours. Kalamazoo Police Supervisors
Assn. and IAFF Local 394 v. City of Kalamazoo, 343 N.W.2d 601 (Mich. App.
1984).
Mutual aid laws allow transfer of control
to another department. Effinger v. Fern Creek Vol. Fire Dept., 564 S.W.2d
847 (Ky. 1978).
Ohio city could abolish its police dept.
and contract for law enforcement services from the county sheriff. State
ex. rel. OCSEA v. City of Coshocton, 448 N.E. 834, 5 Ohio App.3rd 5.
Police chief lacked authority to sign vending
machine contract; power to administer police force does not include purchasing
powers. Chicago Food Mgmt. v. City of Chicago, 163 Ill.App.3d 638, 516
N.E.2d 880 (1988).
Home rule cities can agree to employment
contracts longer than terms of city council members. Tweed v. City of Cape
Canaveral, 373 So.2d 408 (Fla. App. 1979).
A city's post-strike agreement with the police
union was enforceable, even though there was no "consideration"
for the contract. Crowley v. San Francisco, 64 Cal.App.3d 450, 1976 Cal.App.
Lexis 2088, 134 Cal.Rptr. 533. {N/R}
See also: Reductions
in Force, Training Cost Reimbursement.