Almquist v. City of Redmond

166 P.3d 765
Court of Appeals of Washington·Decided August 27, 2007·No. 58809-5-I·Published

Opinion

166 P.3d 765 (2007)

Nick ALMQUIST, John Atkinson, Jason Baird, Jennifer Baldwin, Jon Barnett, Don Baumgartner, Julie Beard, John Berberich, Todd Bowman, Robert Bunn, Brian Coats, Lawrence Conrad, Thomas Conroy, William Corson, Jr., Randall Cox, Colin Davies, Bradley Davis, Freda Deckard, Michael Dowd, Paul Edwardsen, Sandra English, Annmarie Fein, Malcom Frederick, Martin Fuller, Charles Gorman, Anne Harding, Ronald Harding, Stacey Holland, Samuel Hovenden, Brent Howard, Jeffrey Howerton, Jeffrey Jones, Glenn Kaleta, Douglas Krueger, Betsy Lawrence, Steven Lincoln, Joaquin Lipana, Nicholas Lovell, Laurie Mahn, Gregory Mains, Brian Markert, Shawn McCrillis, Laura Murphy, Patricia Neorr, Mike Nhoksayakham, Gregory Patrick, Rodic Pence, Matthew Peringer, Glenn Rotton, Kristi Roze, Jeremy Sandin, Nathan Sanger, Erik Scairpon, Craig Shanks, John Sheehan, Douglas Shepard, Shari Shovlin, Lon Shultz, Kimberly Smith, David Sowers, Richard Springs, Brian Steinbis, Jeffrey Swanson, James Taylor, Gregory Twentey, Kristi Wilson, and Sheree Wright-Cox, Appellants,
v.
CITY OF REDMOND, a political subdivision of the state of Washington, Respondent.

No. 58809-5-I.

Court of Appeals of Washington, Division 1.

August 27, 2007.

*766 Jeffrey Julius, Aitchison & Vick Inc., Seattle, Counsel for Appellants.

Greg Alan Rubstello, Attorney at Law, Seattle, Counsel for Respondents.

BECKER, J.

¶ 1 Having reached an impasse in bargaining, the Redmond Police Association and the City of Redmond went into statutory interest arbitration. The arbitration award included retroactive pay raises for the police employees. The employees sued the City on the ground that the retroactive pay became due as of the day of the arbitrator's award and should have been paid on the next payday after the award instead of two months later. Because the precise date when the retroactive payments were "due" was not fixed by statute, judgment, or contract, the trial court properly entered judgment for the City.

FACTS

¶ 2 The Redmond Police Association had a collective bargaining agreement with the City of Redmond. The agreement expired on December 31, 2001 with no successor agreement having been reached. Negotiations for a 2002-2004 contract reached an impasse over 14 issues. The Public Employee Relations Commission certified those issues to interest arbitration under RCW 41.56.450. Before the hearing, the parties resolved all but three of the issues. The unresolved issues included employee wage rates for all three years of the contract.

¶ 3 Interest arbitration for units of uniformed personnel is conducted under a statute that recognizes the need for "an effective and adequate alternative means of settling disputes" in order to avoid strikes. RCW 41.56.430. It is used to determine the terms of the contract between the parties when they cannot negotiate an agreement, and it "results in a new agreement." City of Bellevue v. International Ass'n of Firefighters, Local 1604, 119 Wash.2d 373, 376, 831 P.2d 738 (1992). An interest arbitration award is *767 not subject to appeal to the Public Employee Relations Commission. WAC 391-55-245. It is "final and binding upon both parties," subject only to superior court review "solely upon the question of whether the decision of the panel was arbitrary or capricious." RCW 41.56.450. The decision of the arbitration panel may be enforced in superior court. RCW 41.56.480.

¶ 4 The interest arbitration panel conducted a hearing in October 2003. The chairperson filed a written decision on March 3, 2004; the parties received it two days later. The decision awarded a wage increase of 3.51 percent retroactive to January 1, 2002; another wage increase of 1.5 percent retroactive to January 1, 2003; and a wage increase of .9 percent retroactive to January 1, 2004.

¶ 5 After receiving the decision, the Association corresponded with the City's attorneys by email about preparing a collective bargaining agreement that both sides would then sign. The Association emphasized the desire of the employees to have the retroactive payments made as soon as possible. The bargaining representatives began the process of incorporating the terms of the arbitration decision into a collective bargaining agreement. By April 2, 2004, issues about contract language had been resolved and a final agreement had been produced. The Mayor was expected to sign for the City after receiving approval from the City Council. The Council was expected to approve the agreement at their meeting on May 4. On April 2, the employees asked to have the agreement presented to the City Council at their April 9 meeting. They also asked why the retroactive payments were being "delayed" in light of RCW 41.56.450 which makes the written determination by the chair of the arbitration panel final and binding on the parties.[1]

¶ 6 The City decided to process the wage increases right away, without waiting for formal council approval of the collective bargaining agreement. The City's scheduled pay dates were on the 10th and 25th of each month. The increased pay rates going forward were set to begin with the April 25, 2004, paycheck. Calculation of back pay was more complex and had to be done manually by the payroll department for each of the 76 employees, taking into account overtime pay, longevity, "other special pay," and a "retroactive dependent medical premium deduction for 2003 and 2004."[2] The City made the retroactive payments on May 25, 2004—the sixth pay day after the arbitration award. The retroactive payments for all 76 employees totaled $399,799.72.

¶ 7 The new collective bargaining agreement between the City and the Association became final on June 8, 2004, with the signatures of both parties' representatives. The agreement was effective from January 1, 2002 to December 31, 2004.

¶ 8 In December 2004, the employees sued the City alleging that the retroactive wages awarded in the March 3 decision should have been paid no later than the payday on March 25, 2004. The trial court dismissed the suit upon finding that the interest arbitration award "did not create an immediate obligation to pay money to the employees."[3] The court found that such an obligation "had to be created through entry of a judgment which was never done or a collective bargaining agreement which was done in June 2004, after the wages had been paid."[4] The employees appeal.

¶ 9 The facts are undisputed. Only legal questions remain. Our review is de novo. Dep't of Corr. v. Fluor Daniel, Inc., 160 Wash.2d 786, 789, 161 P.3d 372 (2007).

¶ 10 The centerpiece of the employees' argument is an administrative rule that requires all "wages due" to be paid at least once a month on established regular paydays:

All wages due shall be paid at no longer than monthly intervals to each employee on established regular pay days.

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Almquist v. City of Redmond, 166 P.3d 765 (Wash. Ct. App. 2007).

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