School District of Drummond v. Wisconsin Employment Relations Commission

352 N.W.2d 662, 120 Wis. 2d 1, 1984 Wisc. App. LEXIS 4050
CourtCourt of Appeals of Wisconsin
DecidedJune 5, 1984
Docket83-1696
StatusPublished
Cited by5 cases

This text of 352 N.W.2d 662 (School District of Drummond v. Wisconsin Employment Relations Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
School District of Drummond v. Wisconsin Employment Relations Commission, 352 N.W.2d 662, 120 Wis. 2d 1, 1984 Wisc. App. LEXIS 4050 (Wis. Ct. App. 1984).

Opinions

CANE, J.

The Wisconsin Employment Relations Commission (commission) and the School District of [4]*4Drummond Employee’s Association (association) appeal the circuit court’s judgment setting aside the commission’s order concerning the School District of Drum-mond’s (district) nepotism policy. The commission’s order required the district to bargain collectively with the association concerning its decision to adopt the policy and the decision’s impact on employees, to cease terminating under the policy any district employees represented by the association, and to rehire Eldon Kravick and compensate him for any loss he suffered as a result of being terminated under the policy. The district cross-appeals that part of the judgment requiring it to bargain the effects of the policy on Kravick’s employment. Because the commission had a rational basis for interpreting sec. 111.70, Stats., to require collective bargaining concerning the district’s decision to adopt and implement its nepotism policy, we reverse the judgment and remand the cause to the trial court with directions to reinstate and affirm the commission’s order. Our decision makes it unnecessary to consider the district’s cross-appeal.1

The district’s school board adopted a “nepotism policy” that barred the district from hiring a spouse or child of any board member under a contract providing for more than $5,000 annual compensation. It also prevented rehiring employees upon expiration of existing contracts if their spouse or parent was a member of the board when the resolution was adopted or subsequently became a member.2 At the time the resolution was adopted, Eldon Kravick was a school bus driver for the district earning [5]*5more than $5,000 a year. His wife, Shirley Kraviek, was a school board member. Since Shirley remained on the board when Eldon’s contract expired, Eldon was not rehired. Both before and after the school board adopted [6]*6the policy, the association, which was the collective bargaining unit representing Eldon, demanded that the district engage in collective bargaining before adopting or implementing the policy. The district refused, arguing that the nepotism policy was strictly a matter of public policy and not a subject for mandatory collective bargaining.

The association filed a complaint with the commission alleging the district committed prohibited practices within the meaning of sec. 111.70, Stats., of the Municipal Employment Relations Act (MERA). The commission appointed an examiner who made findings and concluded that the district committed a prohibited practice within the meaning of sec. 111.70(3) (a)43 by refusing to bargain the decision to adopt the nepotism policy, and that the district committed a prohibited practice within the meaning of sec. 111.70(3) (a)54 by refusing to rehire Eldon Kravick. The examiner ordered the district to bargain with the association concerning the adoption and implementation of the policy, to rehire Kravick pending the outcome of bargaining, and to compensate Kra-vick for his loss due to the termination. The district appealed to the commission, which affirmed its examiner’s decision. The district sought judicial review, and [7]*7the circuit court set aside the commission’s order, requiring the district only to bargain the effects of its policy on Eldon Kravick’s employment.

STANDARD OF REVIEW

When the legislature designates an administrative agency to apply a particular statute, the agency’s interpretation is entitled to great weight and a reviewing court must defer to the interpretation unless it is irrational. Arrowhead United Teachers Organization v. Wisconsin Employment Relations Commission, 116 Wis. 2d 580, 593, 342 N.W.2d 709, 716 (1984). The rational basis standard applies only when the agency’s interpretation reflects a long-continued, substantially uniform, and unchallenged practice or position. If the question is one of first impression, the agency’s interpretation is entitled only to due weight. Id. at 594, 342 N.W.2d 716. Whether the question is one of first impression depends not on whether the agency has previously dealt with the specific type of situation involved, but rather on whether the agency has developed expertise through similar general determinations about the application of MERA. See id.

The commission’s interpretation of sec. 111.70 must be affirmed if it can be supported by any rational basis. In Arrowhead, the commission’s interpretation involved whether student interns and professional teachers shared a community of interest sufficient to place them in the same bargaining unit under sec. 111.70(4) (d)2.a, Stats. The supreme court noted that the commission had never decided the question with respect to students and professionals, but applied the rational basis standard because the community of interest concept reflected a longstanding commission practice in determining appropriate bargaining units under MERA. Arrowhead, 116 Wis. 2d at 594, 342 N.W.2d at 716. In this case, [8]*8although the commission has not previously decided whether adoption and enforcement of a nepotism policy is a mandatory subject for collective bargaining, it has gained substantial experience over many years of applying the “primary relation” concept to determine whether an employer’s actions or contract proposals are mandatory or permissive subjects for collective bargaining under MERA. See Blackhawk Teachers’ Federation v. WERC, 109 Wis. 2d 415, 423, 326 N.W.2d 247, 252 (Ct. App. 1982). The commission’s rulings interpreting the scope of collective bargaining under MERA constitute a longstanding, uniform, and unchallenged practice. Id.

The district argues that Arrowhead does not control the standard of review in this case because Arrowhead involved “questions of law and fact,” and because it was limited to sec. 111.70(4) (d). We disagree. The supreme court in Arrowhead applied the rational basis standard at two steps in the review. The first step was the review of the commission’s interpretation of the statute, a question of law. The second step was the review of the commission’s departure from its prior practice, a question that depended on the specific facts the commission relied on. See Arrowhead, 116 Wis. 2d at 594-96, 342 N.W.2d at 716-17. We are not presented with a departure from previous commission practice,5 only with its interpretation of a statute. That the specific facts in Arrowhead were necessary to review the commission’s departure from prior practice does not affect the analysis set forth in Arrowhead for reviewing the commission’s interpretation of a statute. In addition, [9]*9we find nothing to support the district’s claim that the standard set forth in Arrowhead for reviewing an agency’s statutory interpretations is limited to sec. 111.70 (4) (d) and would not apply to other MERA determinations. The standard of review analysis in Arrowhead supports our previous decision in Blackhawk to apply the rational basis standard to the commission’s interpretations of whether subjects of collective bargaining are mandatory or permissive.

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352 N.W.2d 662, 120 Wis. 2d 1, 1984 Wisc. App. LEXIS 4050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-district-of-drummond-v-wisconsin-employment-relations-commission-wisctapp-1984.