AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO, COUNCIL 61, et al., Respondents, v. STATE OF MISSOURI, et al., Appellants.
No. SC99179
SUPREME COURT OF MISSOURI en banc
October 4, 2022
APPEAL FROM THE CIRCUIT COURT OF COLE COUNTY, The Honorable Jon Edward Beetem,
The State of Missouri and various executive departments and agencies (collectively, the “State“) appeal a judgment entered by the circuit court in favor of American Federation of State, County, and Municipal Employees, AFL-CIO, Council 61; Communications Workers of America, AFL-CIO, Local 6355; and Service Employees International Union, Local 1 (collectively, “Unions“). The State‘s appeal concerns the interpretation and validity of Senate Bill No. 1007, which removed most state employees from the merit system, designating their employment statuses as at-will. The circuit court found SB 1007 does not mandate at-will employment for state employees and, thereby, does not restrict the State in any way from bargaining over terms and conditions of employment with Unions’ employees. Based on this interpretation, the circuit court found the rules and regulations promulgated by the Personnel Advisory Board (“PAB“) to implement SB 1007 an unauthorized expansion of the law because the new rules and regulations restricted the State from bargaining over certain terms and conditions of employment. The circuit court also found SB 1007 did not violate the Missouri Constitution because it did not mandate at-will employment and, therefore, did not interfere with the right to collective bargaining or impair existing collective bargaining agreements. The circuit court alternatively found SB 1007 and the rules the PAB enacted violated multiple provisions of the Missouri Constitution if SB 1007 mandated at-will employment as the State contended. For these reasons, the circuit court entered judgment for the Unions and issued a permanent injunction, enjoining the State from altering existing collective bargaining agreements with Unions pursuant to SB 1007 and ordering the State to bargain in good faith with Unions without constraint from SB 1007, the PAB‘s rules and regulations, or any other state policies effectuating SB 1007.
This Court finds the circuit court‘s judgment erroneously declared and applied the law. SB 1007 mandates at-will employment
Factual Background
In 1945, the General Assembly passed the Merit System Act, establishing a merit system of personnel administration for certain state employees. Merit System Act, 1945 Mo. Laws 1158, 1182. It also established the PAB to prescribe rules and regulations consistent with the Merit System Act. Id. at 1164. The legislature subsequently amended the Merit System Act and renamed it the State Personnel Law. State Personnel Law, 1979 Mo. Laws 217-18. The State Personnel Law designated state employees within several executive departments and agencies as merit-based employees who were subject to the merit system. Id. The merit system guaranteed these state employees certain terms and conditions of employment, including, in part, seniority considerations, grievance procedures, and for-cause and notice requirements concerning employment actions such as hiring, termination, promotion, demotion, transfer, layoff, and discipline. See, e.g.,
While the merit system guaranteed state employees a number of employment protections, the legislature also limited the terms and conditions of employment the state could provide to its employees. For example, the merit system mandated a two-month minimum probationary period during which a new employee may be terminated without cause and required appeals to occur within 30 days. 1945 Mo. Laws 1170, 72, 78. The Public Sector Labor Law, enacted in 1967, also prohibited state employees from striking and required that “[i]ssues with respect to appropriateness of bargaining units and majority representative status . . . be resolved by the . . . board.”
Under this merit system, unions representing state employees and state executive departments and agencies routinely entered into collective bargaining agreements (“CBAs“), which set forth agreed upon terms and conditions of employment for the represented employees within the parameters of Missouri law.2 The CBAs
In 2018, the General Assembly passed SB 1007, amending the State Personnel Law. SB 1007 provides that state employees in charitable or penal institutions and agencies that are required to maintain merit standards by federal law or regulations for grant-in-aid programs (“merit employees“) remain subject to the merit system.
In response to the passage of SB 1007, the PAB filed emergency amendments to the Code of State Regulations (“CSR“), making significant changes to existing rules related to personnel matters. The final adopted rules included the following amendments affecting seniority protections for layoffs and recalls; for-cause protections for suspensions, dismissals, and demotions; and grievance procedures for various employment actions:
1 CSR 20-3.070(1), deleting language on the order of layoffs and recalls based on service date and replacing it with a provision stating that layoffs “shall be administered by each respective appointing authority based on the needs of the service.”
1 CSR 20-3.070(2)-(5), deleting language requiring cause for dismissals and demotions and including new language stating that employees “do not have the right to notice, opportunity to be heard, or appeal” from a suspension, demotion, or discharge and that the appointing authority may demote and discharge at-will employees for “no reason or any reason not prohibited by law” and clarifying that the “causes for suspension, demotion [and] dismissal” apply only to merit employees.
1 CSR 20-4.020(1), including new language that “[n]o state agency may establish a grievance procedure permitting a state employee . . . to grieve” discipline, suspension, demotion, notice of unacceptable conduct or conditional employment, leave denial, transfer, shift change, reprimand, furlough, or “[a]ny employment action that could be alleged to have an adverse financial impact on a state employment” and “no state agency may enter into an agreement with a certified bargaining unit providing for the same or any alternative dispute resolution procedure regarding the matters prohibited [above].”3
Before the enactment of SB 1007 and the PAB‘s amendments to the CSR, Unions had entered into CBAs with the State on behalf of their members. Crucially, all
Procedural Background
In 2018, Unions filed suit against the State, alleging: (1) the State‘s implementation of SB 1007 violated article I, section 29 of the Missouri Constitution by infringing on the right of state employees to bargain collectively with their employer; (2) the State‘s implementation of SB 1007 violated article I, section 13 of the Missouri Constitution by impairing state employees’ contractual rights provided in the unexpired CBAs; and (3) the PAB amendments to the CSR implementing SB 1007 were unauthorized by law or unconstitutional under article I, sections 13 and/or 29. Unions requested injunctive and declaratory relief.
After a four-day bench trial, the circuit court ruled in the Unions’ favor and issued a permanent injunction. The circuit court construed SB 1007‘s at-will provision as setting a default rule rather than a mandate, allowing the State and Unions to bargain over terms and conditions of employment without limitation from the new law. Based on this interpretation, the circuit court found no constitutional violation. The circuit court also found the PAB‘s amendments to the CSR were unauthorized and invalid because they restricted the State from collectively bargaining certain terms and conditions of employment.
The circuit court also made multiple alternative findings if SB 1007 mandated at-will employment as the State contended. The circuit court alternatively found SB 1007 violates the right to bargain collectively provided by article I, section 29 of the Missouri Constitution to the extent SB 1007 prohibits the State from bargaining for certain job protections for state employees. The circuit court also alternatively found SB 1007 substantially impairs the CBAs’ terms, in violation of the right to contract as guaranteed by article I, section 13 of the Missouri Constitution. Lastly, the circuit court alternatively found the PAB‘s amendments to the CSR were unconstitutional for the same reasons SB 1007 was unconstitutional.
The circuit court entered judgment for Unions and issued a permanent injunction, enjoining the State from altering existing collective bargaining agreements with Unions pursuant to SB 1007 and ordering the State to bargain in good faith with Unions without constraint from SB 1007, the PAB‘s amendments to the CSR, or any other state policies effectuating SB 1007. The State appeals the circuit court‘s judgment, including its statutory construction of SB 1007 and alternative holdings regarding the constitutional validity of SB 1007.4
Discussion
The State raises six points on appeal: (1) SB 1007 prohibits the State from agreeing to certain for-cause, grievance, and seniority protections with Unions; (2) SB 1007 does not violate article I, section 29; (3) SB 1007 does not violate article I, section 13; (4) the PAB‘s amendments to the CSR do not violate article I, sections 29 or 13; (5) alternatively, under the circuit court‘s interpretation, SB 1007 does not violate article I, section 29; and (6) Unions failed to establish the requisite elements for a permanent injunction. This Court addresses the State‘s first four arguments as resolution of these issues resolves this appeal.
All the arguments raised in the State‘s appeal require this Court to interpret SB 1007 and the effect the bill has on collective bargaining with state employees. Questions of statutory interpretation are reviewed de novo. Norris v. Dir. of Revenue, 304 S.W.3d 724, 725 (Mo. banc 2010). “This Court‘s primary rule of statutory interpretation is to give effect to legislative intent as reflected in the plain language of the statute at issue.” Parktown Imports, Inc. v. Audi of Am. Inc., 278 S.W.3d 670, 672 (Mo. banc 2009). “Courts look elsewhere for interpretation only when the meaning is ambiguous or would lead to an illogical result that defeats the purpose of the legislation.” Ivie v. Smith, 439 S.W.3d 189, 202 (Mo. banc 2014). When the statute‘s language is unambiguous, a court must give effect to the legislature‘s chosen language. Kerperien v. Lumberman‘s Mut. Cas. Co., 100 S.W.3d 778, 781 (Mo. banc 2003). “In construing a statute, the Court must presume the legislature was aware of the state of the law at the time of its enactment.” State ex rel. T.J. v. Cundiff, 632 S.W.3d 353, 357 (Mo. banc 2021) (internal quotation omitted).
A. SB 1007 Mandates Most State Employees Be Employed At-Will
The circuit court found SB 1007 does not mandate at-will employment but, rather, sets a default rule of at-will employment, permitting the State and Unions to bargain over more protective terms and conditions of employment. On appeal, the State argues the plain and ordinary language of SB 1007 mandates all non-merit, state employees be employed at-will. This Court agrees.
SB 1007 sets forth:
Except as otherwise provided in
section 36.030 , all employees of the state shall be employed at-will, may be selected in the manner deemed appropriate by their respective appointing authorities, shall serve at the pleasure of their respective appointing authorities, and may be discharged for no reason or any reason not prohibited by law, includingsection 105.055 .
Despite the plain and clear language of the at-will mandate in SB 1007, Unions contend SB 1007 merely creates a default rule, relying on Cooperative Home Care, Inc. v. City of St. Louis, 514 S.W.3d 571, 583 (Mo. banc 2017). At issue in Cooperative Home was whether a statute that provided “every employer shall pay to each employee wages at the rate of $6.50 per hour” meant employers could only pay employees exactly $6.50 per hour or meant employers could not pay employees less than $6.50 per hour. Id. at 577, 583. This Court explained the minimum wage statute‘s explicit purpose was to protect employees by providing more balance in bargaining power between employees and employers. Id. at 583. This Court then went on to conclude it would be completely at odds with the statute‘s recognized
A similar conclusion would not be warranted here. SB 1007‘s purpose is to modify the merit system by narrowing its application to state employees in charitable or penal institutions and agencies that are required to maintain merit standards by federal law or regulations for grant-in-aid programs. SB 1007 carries out this purpose by designating these employees as merit employees and all other state employees as at-will. See
Unions also attempt to circumvent the unavoidable, plain and clear language of SB 1007 by pointing to House Bill No. 1413, a public employee collective bargaining bill passed the same day as SB 1007. HB 1413 amended Missouri‘s Public Employee Labor Law, which provided “a loose collective-bargaining framework for public employees.” Mo. Nat‘l Educ. Ass‘n v. Mo. Dep‘t of Lab. & Indus. Rels., 623 S.W.3d 585, 588 (Mo. banc 2021). Among other things, HB 1413 provided, “[e]very labor agreement shall include a provision reserving to the public body the right to hire, promote, assign, direct, transfer, schedule, discipline, and discharge public employees.”
Unions contend HB 1413‘s focus on collective bargaining demonstrates the legislature intended HB 1413 to address collective bargaining and SB 1007 to address statutory merit protections. Unions also contend interpreting SB 1007 to mandate non-merit state employees be employed at-will and restrict the terms the State can bargain over causes conflict between HB 1413 and SB 1007. According to Unions, inconsistency exists because HB 1413 allows employees of the department of corrections to bargain over certain job protections, while SB 1007 would preclude the State from bargaining over certain job protections with department of corrections employees if SB 1007 was interpreted as the State contends.
B. Scope and Definition of At-Will Employment
As discussed above, SB 1007 mandates all state employees, except merit employees, be employed at-will. See
“The at-will employment doctrine is well-established Missouri law.” Margiotta v. Christian Hosp. Ne. Nw., 315 S.W.3d 342, 345 (Mo. banc 2010). Employment at-will is consistently defined as an employment relationship in which the employer and employee have the right to terminate employment at any time for any reason, or no reason at all. See Baker v. Bristol Care, Inc., 450 S.W.3d 770, 775 (Mo. banc 2014) (“Key indicia of at-will employment include indefinite duration or employment and the employer‘s option to terminate the employment immediately without cause.“); Margiotta, 315 S.W.3d at 345 (“Absent an employment contract with a definite statement of duration ... an employment at will is created. An employer may terminate an at-will employee for any reason or for no reason.” (alteration in original) (internal quotation omitted)); Fleshner v. Pepose Vision Inst., P.C., 304 S.W.3d 81, 92 (Mo. banc 2010) (“[T]he general rule in Missouri is that an at-will employee may be terminated for any reason or no reason[.]“); Culver v. Kurn, 193 S.W.2d 602, 603 (Mo. 1946) (“According to decisions of the appellate courts of this State a contract of employment without term may be terminated at the will of either party without cause.“); Mosley v. Members of Civ. Serv. Bd. for City of Berkeley, 23 S.W.3d 855, 859 (Mo. App. 2000) (“Employment is considered to be at-will, that is, terminable for cause or without cause, in the absence of a contract of employment, an ordinance, or a statute conveying a property interest in the employment or providing that the employee can be discharged only for cause.“); McCoy v. Spelman Mem‘l Hosp., 845 S.W.2d 727, 730 (Mo. App. 1993) (“Without a statement of duration, an employment at will is created which is terminable at any time by either party with no liability for breach of contract.“). This well-recognized definition of at-will employment sets forth two conditions of employment: indefinite duration and termination without cause. See Baker, 450 S.W.3d at 775-76 (finding an employment status remained at-will because employment and arbitration agreements did not define a duration of employment and the employer retained the right to terminate employment at any time for any reason); Tettamble v. TCSI-Transland, Inc., 407 S.W.3d 717, 721 (Mo. App. 2013) (finding employment was at-will because terms of addendum did not provide for a definite statement of duration of employment); Sadler v. Village of Bel-Ridge, 741 S.W.2d 889, 891 (Mo. App. 1987) (finding an order, which provided many guaranteed terms of employment, did not modify an at-will employment status because it did not limit the employer‘s right to terminate employment at any time without cause).
Because this Court must presume the legislature understands and knows the law, State ex rel. T.J., 632 S.W.3d at 357, this Court finds the at-will employment relationship mandated by SB 1007 requires an indefinite term of employment and the ability to terminate employment without cause. SB 1007, therefore, restricts the State from bargaining over terms and conditions of employment that provide for a definite duration of employment or require cause for termination. But SB 1007 does not limit state executive departments and agencies from bargaining over terms and conditions of employment that do not similarly conflict with at-will employment.
C. SB 1007‘s Limits on Certain Terms and Conditions of Employment
The State argues SB 1007 limits their ability to agree to certain terms and conditions of employment, including grievance procedures, for-cause protections, and seniority protections because these subjects of collective bargaining are necessarily inconsistent with at-will employment. But grievance procedures, seniority protections, and for-cause requirements are not necessarily inconsistent with at-will employment. These terms and conditions of employment are inconsistent with at-will employment only if they limit the right to terminate employment at any time without cause.
Under Missouri caselaw, grievance procedures and other similar terms and conditions of employment are not always inconsistent with at-will employment. In Sadler, the court of appeals analyzed whether employment guidelines set by a police department changed the terms of employment so that the employment relationship was no longer at-will. 741 S.W.2d at 890-91. The employment guidelines (1) established a “policy in reference to disciplinary action, deportment of personnel, grievances, privileges and procedures, and the appeal rights of [employees]“; (2) “authorize[d] any supervisory officer to reprimand a subordinate for cause and any commander to reprimand or suspend a subordinate
In Daniels v. Board of Curators of Lincoln University, an employee sued his employer for violations of his procedural due process rights after being terminated without a hearing. 51 S.W.3d 1, 3 (Mo. App. 2001). Although the employee was employed at-will, testimony provided that the employer “had informally set aside its at-will employment policy in favor of allowing employees grievance and appeals procedures.” Id. at 8. These procedures, included in a handbook, allowed “employees to request a ‘bill of particulars’ regarding the reasons for termination and provides a right to a hearing on request.” Id. The grievance procedure also provided that employees have the right “to express their concerns and to seek a solution concerning disagreements arising from working relationships, working conditions, employment practices, or differences of interpretation of policy which might arise between the [employer] and its employees.” Id. at 9. The handbook also included a termination for-cause requirement. Id. at 8. After reviewing these facts, the court of appeals analyzed whether the handbook altered the at-will employment relationship between the employee and employer. Id. at 9-10. The court of appeals found that, although “[t]he granting of a right to appeal does not of itself change an employee‘s status as an employee at will,” the employer “provided more than a mere right to review” and altered the at-will employment status “by its promise that termination would not occur without good cause.” Id. at 10.
Based on this caselaw and the definition and scope of at-will employment, this Court finds grievance procedures and other similar terms and conditions of employment are not necessarily inconsistent with at-will employment. Grievance protections are inconsistent with at-will employment only when they limit the right to terminate employment at any time without cause.
For the same reason, seniority and for-cause protections are not necessarily inconsistent with at-will employment. Regarding seniority protections, if an employer is required to consider seniority as a deciding factor in termination, the employer‘s right to discharge an employee at any time without cause would be restricted by that individual‘s amount of experience. This seniority protection, therefore, would interfere with the at-will employment relationship. However, seniority protections that did not restrict the right of the employer to terminate an employee at any time without cause would not interfere with the at-will employment relationship.
In regards to for-cause protections, a necessary element of at-will employment is that either party can terminate the employment relationship for any reason or no reason at all. Johnson v. McDonnell Douglas Corp., 745 S.W.2d 661, 662 (Mo. banc 1988); Mosley, 23 S.W.3d at 859. Outside of certain legal limitations,8 any employment term or condition that limits the ability to terminate employment is wholly inconsistent with at-will employment.9 But for-cause job protections may not always interfere with the right to terminate employment without cause. For example, a for-cause protection that limited disciplinary action against an employee to certain conduct would not interfere with the right to terminate employment without cause and would not be inconsistent with at-will employment. See Sadler, 741 S.W.2d at 891. SB 1007, therefore, merely prohibits the
State from bargaining over grievance procedures, for-cause requirements, and seniority protections that would limit the right to terminate employment at any time without cause.
II. Constitutional Challenges
The parties dispute the constitutional validity of SB 1007 with respect to rights provided by article I, sections 29 and 13 of the Missouri Constitution. This Court finds SB 1007 does not infringe on the rights guaranteed by these constitutional provisions. A challenge to the constitutional validity of a statute is reviewed de novo. Mo. Nat‘l Educ. Ass‘n, 623 S.W.3d at 590. A statute is presumed valid, but, if it conflicts with provisions in the state constitution, this Court must find the statute invalid. Priorities USA v. State, 591 S.W.3d 448, 452 (Mo. banc 2020). The challenger bears the burden of proving the statute‘s constitutional invalidity. Id.
A. Article I, Section 29
The circuit court held SB 1007 violates the right to collective bargaining as provided by article I, section 29 to the extent SB 1007 mandates at-will employment for all non-merit state employees as it would prohibit the State from bargaining over core subjects of employment. The State contends SB 1007 and its limitations on the state‘s ability to bargain over certain terms and conditions of employment does not violate article I, section 29. This Court agrees and finds SB 1007 does not infringe on article I, section 29.10
SB 1007 does not infringe on the right to collective bargaining set out in article I, section 29 because it still allows the State to engage in good faith bargaining with Unions. As set forth in Ledbetter, the guaranteed right to bargain collectively imposes a duty on employers to negotiate in good faith with the purpose to form an agreement. Id. at 364. Under this Court‘s interpretation of SB 1007, article I, section 29 does not prevent the State from bargaining in good faith with Unions representing at-will employees. Rather, it merely limits the terms and conditions of employment the State is authorized to bargain. Under SB 1007, the State is not authorized to bargain over terms and conditions of employment that are inconsistent with at-will employment. The State, however, is free to negotiate any and all employment terms and conditions that SB 1007 does not specifically restrict.
The legislature has historically limited the terms and conditions of employment that the State can bargain over in good faith. Shortly after voters ratified
Under the confines of SB 1007, the State, therefore, is still able to negotiate terms of employment in good faith to try to reach an agreement, fulfilling the purpose of collective bargaining under
B. Article I, Section 13
The circuit court held SB 1007 violates the contracts clause set forth in
Contract interpretation is a question of law, which this Court also reviews de novo. Griffitts v. Old Repub. Ins. Co., 550 S.W.3d 474, 478 (Mo. banc 2018). “The cardinal rule in the interpretation of a contract is to ascertain the intention of the parties and to give effect to that intention.” J.E. Hathman, Inc. v. Sigma Alpha Epsilon Club, 491 S.W.2d 261, 264 (Mo. banc 1973). Unless the contract is ambiguous, the intent of the parties is determined based on the contract alone, not on extrinsic or parol evidence. Id. “[T]he intent of the parties to a contract is expressed by the natural and ordinary meaning of the language referable to it.” Id.
The language in the CBAs demonstrates Unions’ and the State‘s intent to incorporate all relevant future changes to state law and regulations into the CBAs pursuant to their savings clauses. As the United States Supreme Court acknowledged in Energy Reserves Group, Inc. v. Kansas Power & Light Co., 459 U.S. 400, 416 (1983), when a contract expressly provides that its terms are subject to relevant changes in law, such a provision could be interpreted to incorporate all future state regulations; thus, disposing of an
Despite the clear language of the savings clauses, Unions contend SB 1007 substantially impairs the CBAs because any other finding would render the agreements illusory. Unions argue it is absurd “to interpret a savings clause as giving the State unfettered authority to legislate away the terms of its own contracts and ‘determine’ for itself that they are ‘contrary to state or federal law or regulation.‘”12 These arguments,
III. The PAB‘s Amendments to the CSR
The circuit court held that all the PAB‘s amendments to the CSR are unauthorized by SB 1007 and unlawful. This Court finds many of the amendments to the CSR exceed statutory authority to the extent they prevent the State from bargaining over terms and conditions of employment that would not impact employees’ at-will employment statuses.
In reviewing a declaratory judgment on the validity of a rule or regulation, the Court will affirm “unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law.” Pearson v. Koster, 367 S.W.3d 36, 43 (Mo. banc 2012) (internal quotation omitted).
The PAB‘s amendments to the CSR must be authorized by SB 1007 or other existing law. The circuit court found the PAB‘s amendments to the CSR unauthorized and invalid, erroneously declaring that SB 1007 merely set a default rule, rather than a mandate, allowing the State and Unions to bargain over terms and conditions of employment without constraint from SB 1007. However, as previously explained in this opinion, the plain language of SB 1007 mandates all non-merit state employees be employed at-will and does not create a default rule that permits the State and Unions to bargain over terms and conditions inconsistent with at-will employment. SB 1007 allows the State and Unions to bargain over terms and conditions of employment as long as the terms and conditions do not impact the mandated at-will employment status of Union employees. As a result, many of the PAB‘s amendments to the CSR exceed statutory authority to the extent they prevent Unions from bargaining over terms and conditions of employment that would not impact or change the employees’ at-will employment status. Therefore, while the circuit court‘s ultimate conclusion finding some of the rules invalid may be correct, its reasoning for doing so was legally erroneous.13
In an effort to implement SB 1007, the PAB amended
To use their discretion to make layoff determinations, such as whether the agency needs to lay off employees or who to lay off, the appointing authorities could consider various factors, including seniority. While the amended rule gives the appointing authority the discretion to consider seniority, it prohibits at-will employees from having guaranteed seniority protections from layoffs because this would improperly limit the appointing authority‘s discretion, which is mandated by the PAB‘s rule. For example, an appointing authority might think it is in the best interest of its agency to lay off one employee, but it would be precluded from doing so if that employee had guaranteed seniority protections.
To determine if
This Court finds the Eighth Circuit‘s distinction in Clark between termination and layoffs persuasive. Because a layoff is not a complete break in employment,
B. For-Cause Protections – 1 CSR 20-3.070(2), (4)-(5)
The next PAB rule at issue is
SB 1007 prohibits the State and at-will employees from bargaining over for-cause protections for dismissals because, as explained above, any employment term or condition that limits the ability to terminate employment is wholly inconsistent with at-will employment. It is less clear initially whether SB 1007 prohibits for-cause protections for demotions. The layoff analysis from Clark provides guidance on whether for-cause protections for demotions limit the right to terminate employment without cause. In Clark, the federal court persuasively held that terms and conditions governing employee layoffs were consistent with at-will employment because a layoff is not a complete break in employment. 205 F.3d at 1082 n.2. Similarly, demotions do not result in a complete break in employment with no expectation of recall but, instead, generally result in a change of work responsibilities, title, or compensation. For-cause protections for demotions, therefore, would not violate the at-will mandate in SB 1007 by limiting the employer‘s right to terminate employment without cause. See Sadler, 741 S.W.2d at 890-91; see also Daniels, 51 S.W.3d at 10. Because
C. Grievances – 1 CSR 20-3.070(3)-(5) and 1 CSR 20-4.020(1)
The PAB amended
The PAB‘s amendments to
SB 1007, however, limits the State from agreeing to grievance procedures only when the procedures would be inconsistent with at-will employment; and grievance procedures are inconsistent with at-will employment only if they impact the ability to terminate employment at any time for any reason. Grievance procedures for the various employment actions listed in
Conclusion
In sum, this Court finds the plain language of SB 1007 mandates all non-merit state employees be employed at-will, and, as a result, the State is not permitted to bargain with Unions over terms and conditions of employment that would be inconsistent with at-will employment. These terms and conditions are inconsistent with at-will employment only if they limit the right to terminate employment at any time without cause. This Court also finds SB 1007 does not violate the right to bargain collectively as guaranteed by
Because the circuit court erred in finding SB 1007 did not impact collective bargaining or mandate at-will employment and SB 1007 violated
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W. Brent Powell, Judge
All concur.