Pennsylvania Workers' Compensation Judges Professional Ass'n v. Executive Board of the Commonwealth
39 A.3d 486
Pa. Commw. Ct.
2012

Background

  • WCJs classified as management level employees since 1996; they are not represented by a union and not covered by CBAs.
  • Every four years, other Commonwealth unions bargain CBAs, typically affecting wages and longevity increases.
  • March 18, 2008 resolution granted WCJs a 3% general pay increase (July 2008) and a one-step longevity increment (January 2009) or 2.25% lump sum for those at max pay, contingent on continuous employment since Jan 31, 2008.
  • December 19, 2008 resolution rescinded the January 2009 longevity increment and the 2.25% lump sum due to fiscal constraints.
  • Association filed a class action Dec 17, 2010 seeking declaratory/injunctive relief and damages for alleged Contract Clauses, Takings Clause violations, and §1983 claims against the Executive Board.
  • Court sustained preliminary objections, dismissing the petition; held no enforceable contract right, no state-law or federal contract/takings violation, and no §1983 action against the Executive Board.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether §1983 claims survive against the Executive Board. Association asserts rights arising from March resolution. Board not a ‘person’ under §1983. §1983 claims barred; Board not a ‘person.’
Whether the March resolution created enforceable contract rights for WCJs. March resolution conferred contractual rights. No consideration; no enforceable contract. No enforceable contract right; no bargained-for exchange.
Whether the December resolution violated the Contract Clause. Resolution impaired contractual relationships. Actions not legislative; no impairment of contract. Resolutions not legislative actions; no Contract Clause violation.
Whether the Takings Clause claims prevail given wages/salary interests. WCJs have a property/right in future salaries. Public employees lack guaranteed salary rights absent contract; at-will employment. Takings claims fail; no protected property right in increased salaries.

Key Cases Cited

  • Association of Settlement Companies v. Department of Banking, 977 A.2d 1257 (Pa.Cmwlth.2009) (Department not a ‘person’ under §1983; government entities not suable.)
  • Will v. Michigan Department of State Police, 491 U.S. 58 (1989) (establishes not all state actors are ‘persons’ under §1983.)
  • Faust v. Department of Revenue, 140 Pa.Cmwlth. 389, 592 A.2d 835 (1992) (state agencies/officials not ‘persons’ under §1983.)
  • Owens v. Shannon, 808 A.2d 607 (Pa.Cmwlth.2002) (pleading requirements for §1983 claims.)
  • Beaver Dam Outdoors Club v. Hazleton City Authority, 944 A.2d 97 (Pa.Cmwlth.2008) (consideration required for contract formation.)
  • Pyle v. Department of Public Welfare, 730 A.2d 1046 (Pa.Cmwlth.1999) (consideration essential for contracts.)
  • Barker v. City of Pittsburgh, 4 Pa. 49 (1846) (no contract for permanence of salary.)
  • Wagoner v. Philadelphia, 215 Pa. 379, 64 A. 557 (1906) (salary fixing not a constitutional contract.)
  • New Orleans Waterworks Company v. Louisiana Sugar Refining Co., 125 U.S. 18 (1888) (administrative action not a Contract Clause violation.)
  • Transport Workers Union of America, Local 290 v. SEPTA, 145 F.3d 619 (3d Cir.1998) (employee-benefit changes not legislative action under contract clause.)
  • Jefferson County Court Appointed Employees Association v. Pennsylvania Labor Relations Board, 603 Pa. 482, 985 A.2d 697 (2009) (salaries/fixed compensation context in public employment.)
  • Franklin County Prison Board v. Pennsylvania Labor Relations Board, 491 Pa. 50, 417 A.2d 1138 (1980) (administrative vs legislative action in public salaries.)
  • Stumpp v. Stroudsburg Municipal Authority, 540 Pa. 391, 658 A.2d 333 (1995) (employment contracts and protections in public entities.)
  • Werner v. Zazyczny, 545 Pa. 570, 681 A.2d 1331 (1996) (public employee rights and employment termination.)
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