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For Immediate
Release
12/29/09
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Senator Piccola
Supreme Court Affirms Senators' Position in
Employee Furlough Case
Court also rules workers cannot be forced to work without
pay
(HARRISBURG) -- State Senators John R. Gordner (R-27), Jeffrey E. Piccola
(R-15), and Jane Earll (R-49) welcomed the Pennsylvania Supreme Court opinion
yesterday which concluded that Governor Ed Rendell is not required by law to
institute furloughs or "payless paydays" in the event of a budget impasse. Chief
Justice Ronald Castille, writing for the 6-1 majority, concluded "that (Article
III) Section 24 (of the Pennsylvania Constitution) did not prohibit the
Commonwealth from continuing to employ and pay all FLSA (Fair Labor Standards
Act) nonexempt Commonwealth employees in the event that the Pennsylvania General
Assembly failed to pass a budget by July 1."
"I see this decision as vindication for the thousands of state workers who
were used as 'pawns' by Governor Rendell during the budget process," Sen.
Gordner remarked. "The Supreme Court made it clear that any decision to furlough
is solely at the discretion of the Governor and is not required by the
Pennsylvania Constitution or any other state or federal law. Further, the Court
concluded that the law requires timely payment of wages, regardless of the
status of the budget on July 1st."
Council 13 AFSCME, SEIU and FOSCEP filed the lawsuit in June 2008 on behalf
of state workers represented by the unions to determine whether the Governor had
any basis in law to mandate a furlough of state workers in the event of a budget
impasse. Beginning in 2007, Governor Rendell had consistently argued that he was
required by the state Constitution and the FLSA to furlough "noncritical" state
employees, leading to a one-day furlough in 2007 and a threat to do the same in
2008.
Following a July 2008 single-judge ruling of the Commonwealth Court, the
unions appealed to the Supreme Court arguing that the Governor was not legally
obligated to furlough state employees in the event of a budget impasse. Citing
the Commonwealth Court's decision, Governor Rendell abandoned the furlough
scheme in 2009 and instead instituted "payless paydays" during the budget
impasse, which the unions argued was a violation of the FLSA. Sens. Gordner,
Piccola and Earll submitted a "friend of the court brief" with the Supreme Court
supportive of the unions' legal arguments.
"The Supreme Court squarely addressed the Governor's legal obligations in
regard to state employees during a budget impasse," Sen. Earll said, "and the
Court rightly concluded that the Governor is not required to furlough employees
during an impasse and that he is required to pay workers for services rendered
in a timely manner as mandated by the FLSA."
The U.S. Secretary of Labor has the authority under the FLSA to file a
lawsuit on behalf of state workers to recover wages and liquidated damages equal
to two times the wages of the employees if the Commonwealth violates the Act.
The Obama Administration initiated an investigation of the state during the
period of "payless paydays" in July-August, but declined to pursue the
investigation or to seek double damages when the employees were paid after the
enactment of a "bridge budget" on August 5, 2009.
"The Governor has used furloughs and more recently 'payless paydays' as tools
for leverage during budget negotiations to strong-arm the General Assembly into
agreeing with unrelated legislative proposals or significant tax increases,"
Sen. Piccola stated. "It is my hope that this decision will put an end to
governance by extortion."
Contacts:
Joshua Funk (Senator Gordner)
(717) 787-8928
Kirsten Kenyon (Senator Piccola)
(717) 787-6801
Jason Brehouse (Senator Earll)
(717) 787-8927
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