Willets v. City of Creston

433 N.W.2d 58, 1988 WL 129612
CourtCourt of Appeals of Iowa
DecidedDecember 8, 1988
Docket88-242
StatusPublished
Cited by7 cases

This text of 433 N.W.2d 58 (Willets v. City of Creston) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willets v. City of Creston, 433 N.W.2d 58, 1988 WL 129612 (iowactapp 1988).

Opinion

SACKETT, Judge.

This case involves issues surrounding Plaintiffs-Appellants’ Lowell Willets, Art Becker and Melford Johnston claim to compensation for accumulated sick leave. The dispute arose when Defendant City of Cre-stón modified their sick leave policy. Plaintiffs, nonbargaining unit employees of the city, who continued to be employed by the city, filed a petition for declaratory judgment seeking a determination they were entitled to payment for accumulated sick leave and seeking money damages from the city. The city filed a motion for summary judgment which the trial court sustained. Plaintiffs appeal. We affirm.

We set forth the facts which are substantially undisputed. All three of the plaintiffs are “at will” employees of the City of Crestón. Plaintiff-Appellant "Lowell Wil-lets was employed for more than twenty years prior to June 30, 1986. Plaintiff-Appellant Melford Johnston has been employed for more than twenty years prior to June 30, 1986. Plaintiff-Appellant Art Becker had been employed for more than thirteen years prior to June 30, 1986. Dur *60 ing all relevant periods, they have been employed as department heads and/or supervisors of the city who were not covered by the terms of a collective bargaining agreement.

At some time prior to 1974, the city had a practice of permitting employees to accumulate up to sixty days of unused sick leave. Employees earned sick leave at the rate of one day per month and accrued sick leave in excess of the sixty-day cap was lost. Prior to 1974, employees who terminated their employment with the city were eligible for payment of unused sick leave accumulated up to this cap. There is no record of when or how this practice started. On July 2, 1974, during the employment of all three plaintiffs, the city by resolution changed this practice. While still permitting employees to accumulate up to sixty days of unused sick leave, the 1974 resolution specifically provided that “[n]o payment for unused sick leave credit shall be made upon separation from city employment.”

On or about July 1,1978, the city negotiated collective bargaining agreements for certain city employees who were part of two separate bargaining units. A section of these agreements provided an accumulation cap for bargaining unit employees’ sick leave and set the cap at a maximum of forty days (960 hours divided by 24 hour shifts). Accumulated sick leave up to the cap could be used during the term of employment for occasions of illness. After five years of employment from the date of the 1978 contract provision, a bargaining unit employee who terminated his/her employment with accumulated sick leave during the term of the contract would be eligible for payment of up to thirty days of accumulated unused sick leave.

The collective bargaining agreements, a 1983 letter from the city attorney who negotiated the 1978 agreement, and the affidavits of the city’s current financial officer, the independent auditor for the city since 1981, all indicate that in the application of the collective bargaining sick leave provisions, all sick leave accumulated by employees prior to 1978 was disregarded for payout purposes and the period of required service to qualify for payment upon termination dated from the 1978 contract which added this sick leave feature. All accumulated sick leave which was accumulated prior to the 1978 collective bargaining provision was disregarded for payout purposes “so all members of the bargaining unit would start equally as far as accumulation of sick leave [for possible payout purposes].” The time for eligibility for payout upon termination under the minimum service requirements of the contract was five years dating from 1978. In the 1980 collective bargaining agreements, the sick leave accumulation cap was raised to 120 days (2880 hours divided 24 hour shifts), but the potential accumulated sick leave payout upon termination remained at thirty days after five years of work under the policy.

From 1974 until 1980, plaintiffs and other nonbargaining unit employees of the city were not eligible for any payment of any portion of the sick leave which was accumulated if the employee terminated his/her employment during that period. On March 4, 1980, by resolution, the city council resolved “all City employees be entitled to all fringe benefits currently made available to the Local Bargaining units of Fire and Police Department.”

Plaintiffs’ petition initially claimed that on March 4, 1980, the city council formalized an oral compensation agreement which was existing at that time with the Plaintiffs and other nonunion by duly passing Resolution No. 31,_”

Plaintiff Willets’ affidavit submitted in support of his resistance to the motion for summary judgment describes his conversation with Mayor Weaver, not as an oral contract, but as a “request” which “initiated the policy in making nonbargaining unit employees, as part of their compensation, receive the benefits such as accrued sick leave that bargaining unit employees had previously received.” Willets provided no evidence he was permitted to accumulate sick leave under a payout policy prior to the resolution passed by the city on March 3, 1980.

*61 From the 1980 resolution until a June 3, 1986 resolution which changed this payout feature of sick leave, employees could accumulate one and one-half days of sick leave per month (36 hours divided by 24-hour shifts) or eighteen sick days per year; up to a maximum cap of accumulated leave available for sickness of 120 days (2880 hours divided by 24 hours). In calculating the amount of accrued sick leave for each city employee, the city’s financial officer reported that the city added unused sick leave amounts earned in the current year, and if the accumulation cap was reached, deducted previously accumulated sick leave by use of a first in, first out method.

When the payout upon termination practice was extended to nonbargaining unit city employees by the March resolution, which was effective July 1, 1980, all accrued sick leave which was accumulated prior to 1978 was disregarded for payout purposes, and the minimum service requirements for any payout upon termination dated from 1978, the date used for bargaining unit employees.

During the terms of the union contracts with this payout feature, i.e. 1978-1986, and the term of the city council resolutions with this payout feature for nonbargaining unit employees, i.e. 1980-1986, only employees who terminated their employment during these respective periods became eligible for and were paid a lump sum sick leave payout.

When the city decided to end the payout feature of any portion of accumulated sick leave, the city bought back from nonbar-gaining unit employees a portion of the sick leave they had accumulated during the effective period of the 1980 payout resolution. The amount of sick leave to be purchased by the city was set uniformly for all nonbargaining unit employees based upon the employee’s length of service times $200 per full year of employment. The payment was not dependent on their meeting the five year employment requirement had they quit in June, 1986. The product of these two figures [years of service X $200], divided by the employee’s hourly wage equivalent provided the maximum amount of accrued sick leave hours the city would be willing to currently buy back in a lump sum.

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Bluebook (online)
433 N.W.2d 58, 1988 WL 129612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willets-v-city-of-creston-iowactapp-1988.