State Personnel Board v. Department of Personnel Administration

123 P.3d 169, 36 Cal. Rptr. 3d 142, 37 Cal. 4th 512, 2005 Cal. Daily Op. Serv. 10110, 2005 Daily Journal DAR 13804, 2005 Cal. LEXIS 13256, 178 L.R.R.M. (BNA) 2668
CourtCalifornia Supreme Court
DecidedDecember 1, 2005
DocketS119498
StatusPublished
Cited by36 cases

This text of 123 P.3d 169 (State Personnel Board v. Department of Personnel Administration) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Personnel Board v. Department of Personnel Administration, 123 P.3d 169, 36 Cal. Rptr. 3d 142, 37 Cal. 4th 512, 2005 Cal. Daily Op. Serv. 10110, 2005 Daily Journal DAR 13804, 2005 Cal. LEXIS 13256, 178 L.R.R.M. (BNA) 2668 (Cal. 2005).

Opinion

Opinion

KENNARD, J.

The memoranda of understanding (MOU’s) of four state employee bargaining units 1 allow covered employees to challenge disciplinary actions either by seeking review before the State Personnel Board or by pursuing an alternative grievance/arbitration procedure that bypasses the State Personnel Board. The Legislature ratified the grievance/arbitration procedures set forth in the four MOU’s by enacting implementing legislation. (See Gov. Code, § 18670, subds. (c), (d) & (e); further undesignated statutory references are to the Government Code.)

Does this bypass of the State Personnel Board violate article VII, section 3 of the California Constitution, which provides that the State Personnel Board “shall . . . review disciplinary actions” taken against state civil service employees? (Cal. Const., art. VII, § 3, subd. (a).) We conclude that it does.

I.

A. MOU’s and Implementing Legislation

1. Unit 8 (Firefighters)

In 1998, the Department of Personnel Administration, which represents the Governor of California in labor negations with state employee unions, entered into an MOU with the Department of Forestry Firefighters (Firefighters’ Union), the bargaining agent for Unit 8. That MOU (hereafter also referred to as the original Unit 8 MOU) sets forth a procedure by which a firefighter can challenge a disciplinary action. “Discipline” includes punitive dismissals, demotions, suspensions and pay reductions. Discipline can be “major” or *517 “minor.” Major discipline is a suspension of more than five days or a pay reduction of more than 5 percent. Anything less than that is minor discipline.

The original Unit 8 MOU allows a firefighter to challenge a major disciplinary action in one of two ways: either by seeking review before the State Personnel Board, or by filing a grievance with a “Board of Adjustment” comprised of four members (two selected by the union and two by the employer). A minor disciplinary action can be challenged only through the Board of Adjustment grievance procedure; that board’s decision is final and binding, subject only to confirmation as an arbitration award. (See Code Civ. Proc., § 1280 et seq.) If the Board of Adjustment fails to reach a decision, the disciplinary action would be sustained unless the employee or the Firefighters’ Union sought arbitration. The arbitrator’s decision would likewise be final and binding, and subject to judicial review only on the grounds set out in Code of Civil Procedure section 1286.2. These include “corruption, fraud, or other undue means” in procuring the award, and corruption or prejudicial misconduct by an arbitrator. (Id., subd. (a)(1).)

To implement those provisions of the original Unit 8 MOU, the Legislature in 1998 added a new subdivision to section 18670. That statute in subdivision (a) provides for the State Personnel Board to “hold hearings and make investigations concerning all [civil service] matters.” (§ 18670, subd. (a), italics added.) The 1998 amendment added subdivision (d), which applies “only to state employees in State Bargaining Unit 8”; it exempts Unit 8 employees from either “investigation or hearing” by the State Personnel Board. (§ 18670, subd. (d), as amended by Stats. 1998, ch. 1024, § 7, subsequently amended by Stats. 1999, ch. 446, § 6 and now designated subd. (c).j

In 2000, as the result of a lawsuit brought by the Association of California Attorneys and Administrative Law Judges (State Attorneys and ALJ’s), the trial court issued a writ of mandate prohibiting the original Unit 8 MOU’s alternative grievance/arbitration procedure allowing disciplined firefighters to bypass review by the State Personnel Board in favor of review before a different agency. In response, the Department of Personnel Administration and the Firefighters’ Union amended the original Unit 8 MOU. The amended Unit 8 MOU, which we discuss below, states that the “modification shall be temporary” and that the MOU will revert to the original language “if the Court of Appeal reverses the Superior Court judgment.”

The amended Unit 8 MOU gives firefighters subject to minor discipline the choice to seek review before the State Personnel Board or to bypass such review and instead pursue the grievance/arbitration process. (Under the original MOU, a firefighter wishing to challenge a minor discipline could do *518 so only through the grievance/arbitration procedure.) In addition, the amended Unit 8 MOU requires an arbitrator’s decision to be submitted to the State Personnel Board to ensure that the decision does not conflict with “merit principles.”

2. Unit 11 (Engineering and Scientific Technicians)

Effective July 1, 1999, the Department of Personnel Administration and the California State Employees Association (CSEA), as bargaining agent, entered into an MOU governing employees in Unit 11 (Unit 11 MOU), consisting of engineering and scientific technicians. Relevant here are the MOU provisions pertaining to mandatory substance abuse testing for those employees operating commercial vehicles. Employees disciplined or dismissed after receiving a positive test result during probation may challenge the action through a grievance and arbitration process, or if they choose, may seek review before the State Personnel Board.

To implement the Unit 11 MOU, the Legislature in 1999 added subdivision (d) to section 18670. (Stats. 1999, ch. 630, § 2.) Then in 2000 the Legislature amended section 18670 by adding another new subdivision (d) (Stats. 2000, ch. 402, § 5.) In relevant part, this new subdivision (d) states that covered employees who have been disciplined for “positive drug test results” and who have elected to challenge the discipline through the grievance and arbitration procedure “are not subject to either a[n] . . . investigation or a hearing” by the State Personnel Board. (See also § 19175, subds. (f) & (g); Code Civ. Proc., § 1094.5, subd. (k).)

3. Unit 12 (Craft and Maintenance Workers) and Unit 13 (Stationary Engineers)

The MOU’s between the Department of Personnel Administration and the Operating Engineers (the bargaining agent for employees in Units 12 and 13) date from September 21, 1999. As the exclusive means for resolving minor disciplinary actions, the MOU’s for Units 12 and 13 (Unit 12 MOU, Unit 13 MOU) provide a grievance procedure before a four-member “Board of Adjustment,” consisting of two members chosen by the Department of Personnel Administration and two by the union. For challenges to major disciplinary actions, 2 employees can elect between review before the State Personnel Board or a grievance filed with the Board of Adjustment. The *519 latter’s decision is subject to arbitration, which, except for the grounds set out in Code of Civil Procedure section 1286.2 (see p. 517, ante), is final and binding.

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123 P.3d 169, 36 Cal. Rptr. 3d 142, 37 Cal. 4th 512, 2005 Cal. Daily Op. Serv. 10110, 2005 Daily Journal DAR 13804, 2005 Cal. LEXIS 13256, 178 L.R.R.M. (BNA) 2668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-personnel-board-v-department-of-personnel-administration-cal-2005.