Bailey v. Public Employees Retirement Board

208 P.3d 511, 228 Or. App. 300, 2009 Ore. App. LEXIS 457
CourtCourt of Appeals of Oregon
DecidedMay 13, 2009
Docket050918, A134007
StatusPublished
Cited by1 cases

This text of 208 P.3d 511 (Bailey v. Public Employees Retirement Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey v. Public Employees Retirement Board, 208 P.3d 511, 228 Or. App. 300, 2009 Ore. App. LEXIS 457 (Or. Ct. App. 2009).

Opinion

*302 ARMSTRONG, J.

Petitioner seeks review of a final order of the Public Employees Retirement Board (PERB) that rejected her claim that she was entitled to receive credit toward retirement benefits for service as a public employee at Oregon Health and Science University (OHSU) for the month of January 2002. Although petitioner was on strike from work at OHSU in January 2002, she contends that she was entitled to receive service credit as an employee for that month because a payment that OHSU was ordered to make to petitioner and other striking employees constituted “salary” under former ORS 238.005(20)(b)(C) (2001) that entitled her to that credit. 1 PERB rejected that contention. On review for legal error, ORS 183.482(8)(a), we affirm PERB’s decision.

Petitioner was employed as a nurse at OHSU and was a member of the Oregon Nurses Association (ONA) bargaining unit at OHSU. Between December 16, 2001 and February 14,2002, petitioner and other ONA bargaining unit members at OHSU were on strike. During that period, OHSU paid a “critical need incentive” (CNI) bonus to nurses who crossed picket lines to work. The ONA filed a complaint against OHSU with the Employment Relations Board (ERB), alleging that payment of the CNI was an unfair labor practice in violation of the Public Employee Collective Bargaining Act, ORS 243.672. ERB upheld the complaint and ordered OHSU “to pay the equivalent CNI amount to strikers that it paid to nonstrikers.” Oregon Nurses Association v. Oregon Health & Science University, 19 PECBR 696 (2002). The CNI remedy pay that ERB ordered OHSU to pay the striking nurses was calculated by taking the total amount of CNI bonuses that OHSU had paid to the nonstriking nurses and dividing it among striking nurses on a pro rata basis. Striking nurses received the ERB-ordered payment only if and when they returned to work at OHSU. The ERB order also specified that “OHSU is not being required to pay for work not performed.” Id. Petitioner returned to work after the *303 strike and received CNI remedy pay in the amount of $315.74.

Before the strike, petitioner had requested from the Public Employee Retirement System (PERS) an estimate of her retirement benefits from the system. While she was on strike, petitioner received an estimate from PERS that calculated that she would be eligible for retirement benefits in June 2003. After the strike, petitioner requested from PERS another estimate of her retirement benefits, but PERS denied the request because a year had not elapsed since petitioner’s first request. Relying on the first PERS estimate and believing that she was eligible for retirement benefits, petitioner retired from OHSU in June 2003. When she did not begin receiving PERS payments 90 days after she had retired, petitioner contacted PERS and learned that PERS believed that she was one month short of the creditable service required for her to receive PERS benefits because she was listed as having been on leave without pay from OHSU for January 2002. Because petitioner worked a major fraction of December 2001 and February 2002, both of those months were counted as creditable service and are not at issue. 2

Petitioner challenged PERS’s determination that she lacked one month creditable service, arguing she had not been on leave in January 2002 but, rather, had been on strike. PERS responded that, although petitioner was not technically on leave during the strike period, the leave designation was simply an administrative means to record the fact that she did not work or receive a salary from OHSU in January 2002 and thus did not have creditable service for that month. Petitioner challenged that decision before PERB, arguing that the ERB-ordered CNI remedy pay constituted salary for January 2002 and, hence, meant that she was entitled to service credit for the month. PERB disagreed with petitioner’s argument and concluded that the CNI remedy *304 pay was not “salary.” On review, petitioner renews her argument that the CNI remedy pay is “salary” within the meaning of ORS 238.005(20)(b)(C) and, accordingly, that she had “creditable service” for January 2002 entitling her to PERS payments.

ORS 238.005(5) defines “creditable service” as “any period of time during which an active member is being paid a salary by a participating public employer[.]” To determine whether petitioner had creditable service for January 2002, we must determine whether she received a “salary” for that period. Salary for that purpose is defined, in part, as follows:

“(a) ‘Salary’ means the remuneration paid an employee in cash out of the funds of a public employer in return for services to the employer * * *.
“(b) ‘Salary’ includes but is not limited to:
«Hi * * * *
“(C) Retroactive payments made to an employee * * * pursuant to * * * order of * * * an administrative agency charged with enforcing federal or state law protecting the employee’s rights to employment or wages, which shall be allocated to and deemed paid in the periods in which the work was done or in which it would have been done.”

ORS 238.005(20). The parties agree that the CNI remedy pay was paid pursuant to ERB order, and that ERB is an “administrative agency charged with enforcing federal or state laws protecting the employee’s rights to employment or wages.” They disagree, however, about whether the payment was “retroactive” and whether it “is allocated to and deemed paid in the periods in which the work was done or in which it would have been done.”

Petitioner argues that PERB erroneously concluded that the CNI remedy pay was not a retroactive payment under ORS 238.005(20)(b)(C). In support of her argument, petitioner points to the nature of the remedy fashioned by ERB and argues that “ERB sought to eliminate the explicit reward of strike breaking nurses by also rewarding striking nurses with the same salary received by the strike breakers.” *305 According to petitioner, OHSU unlawfully paid the CNI during the strike period, and the ERB-ordered CNI remedy payments were designed to make the striking nurses whole for the injury done to them during the strike period. Thus, in petitioner’s view, the CNI remedy pay is directly attributable to the strike period and, therefore, retroactive.

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Cite This Page — Counsel Stack

Bluebook (online)
208 P.3d 511, 228 Or. App. 300, 2009 Ore. App. LEXIS 457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-public-employees-retirement-board-orctapp-2009.