California Department of Human Resources v. Service Employees International Union
148 Cal. Rptr. 3d 57
Cal. Ct. App.2012Background
- DPA negotiated MOUs with SEIU Local 1000 raising salary ranges for CDCR medical staff, effective Jan 1, 2007, later approved by Legislature and Governor in 2006.
- In Oct 2006, a federal court order increased the same salary ranges more than the MOUs, retroactive to Sept 1, 2006 (Plata.order).
- DPA treated MOOs as superseded by Plata increases; Union grieved that MOUs should be calculated on top of Plata ranges, per January 1, 2007 extant ranges.
- An arbitrator ruled for the Union, ordering full restoration of lost income and retaining jurisdiction over implementation; trial court confirmed the award.
- State appealed, arguing the arbitration award violated public policy by paying above Legislature-approved levels and by exceeding arbitral powers.
- On appeal, the court held that despite the arbitrator’s interpretation of the MOUs, higher salaries require explicit legislative approval; arbitrator and judiciary cannot implement the arbitration award without legislative action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the arbitrator exceed powers by ordering higher salaries without legislative approval? | DPA and CDCR; State | Union | Yes, to the extent of requiring higher salaries without explicit legislative approval. |
| Can the Plata order be harmonized with MOUs such that Plata increases are added on top of MOUs? | Union | State | Ambiguous; only explicit legislative approval can authorize adding on top of MOUs. |
| Does the arbitrator retain jurisdiction to enforce the award? | Union | State | No; jurisdiction to enforce relief is not proper where funding/approval is not legislative. |
| Is there an appropriations issue to fund the arbitration remedy? | Union | State | Arbitration cannot mandate unapproved expenditures; legislature must authorize funding. |
Key Cases Cited
- California Correctional Peace Officers Assn. v. Department of Personnel Administration, 152 Cal.App.4th 1193 (2007) (public policy limits on arbitral changes to state contracts; legislative oversight required)
- California Statewide Law Enforcement Assn. v. Department of Personnel Administration, 192 Cal.App.4th 1 (2011) (retroactivity and fiscal approval required for benefits; explicit legislative approval needed)
- California State Employees’ Assn. v. State of California, 131 S. Ct. 1910 (2011) (Plata federal court order and related waivers; federal supremacy principles)