Justia Illinois Supreme Court Opinion Summaries

AFSCME represents approximately 40,000 state employees working in executive agencies. In 2008, AFSCME and the state negotiated a collective bargaining agreement effective through June 2012, providing for a general wage increase on January 1, 2009, and thereafter on every July 1 and January 1. Individual increases varied, but totaled 15.25%. A 4% increase was scheduled for July 1, 2011. In 2010, facing declining state revenues and the potential layoff of 2,500 state employees, AFSCME and the state agreed to $300 million in cost savings, including deferring the July 2011 increase; a 2% increase would be implemented on July 1, 2011, with the remaining 2% to be implemented on February 1, 2012. After adoption of the fiscal 2012 budget, the Department of Central Management Services notified agencies and labor relations administrators that, due to insufficient appropriations, the wage increase could not be implemented in 14 agencies. In arbitration, the state argued that the Public Labor Relations Act mandates that executive branch expenditures under a CBA are contingent on corresponding appropriations by the General Assembly, that this provision restates the mandate of the Illinois Constitution appropriations clause, and that it was incorporated into the CBA by the statement that “the provisions of this contract cannot supersede law.” The arbitrator issued an award in favor of AFSCME. The Illinois Supreme Court reversed the lower courts and vacated the award, holding that the arbitration award violates Illinois public policy, as reflected in the appropriations clause and the Public Labor Relations Act. View "Illinois v. Am. Fed'n of State, County & Mun. Employees, Council 31" on Justia Law

Illinois has four public pension plans for Chicago city employees; all subject to the pension protection clause of the Illinois Constitution: “Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.” The funds provide traditional defined benefit plans. As with state-funded pensions, for employees hired before 2011, annuity payments were subject to 3% automatic annual increases beginning after the member’s first full year of retirement, and compounded annually. For later-hires, the annuity adjustments were tied to the Consumer Price Index (CPI). Before Public Act 98-641, employees contributed 8.5% of their salary toward their pension. The city contributed based on a fixed multiplier, paid largely from property tax proceeds.The pensions were inadequate to cover benefits. The funds are on “a path of insolvency.” Public Act 98-641, effective in 2014, was based on a finding that financial crisis could not be addressed by increased funding alone. Under the Act, the city’s contribution progressively increases beginning in 2021; employee contributions are also increased. For two city funds, the Act: reduces the annual benefit increase to the lesser of three percent or half the annual unadjusted percentage increase in the CPI; removes the compounding component; eliminates increases in specific years, and postpones the initial increase. The Illinois Supreme Court found the Act unconstitutional. Nothing in the legislative process that led to its enactment constituted a waiver of members’ rights under the pension protection clause.Whether members may be “better off” under the Act is not for the General Assembly to decide unilaterally. View "Jones v. Mun. Employees' Annuity & Benefit Fund" on Justia Law

Plaintiff was employed by American since 1988. On January 1, 2012, while working as a tower planner at O’Hare, plaintiff received a call from a friend at another airline, asking plaintiff to do something for a passenger who was scheduled to fly on American. Plaintiff requested that the catering department deliver a bottle of champagne and asked a flight attendant whether it would be possible to upgrade the passenger. The passenger was upgraded to first class. Plaintiff's employment was terminated because she upgraded the passenger and requested the champagne without proper authorization. American cited employee policies concerning dishonesty. Plaintiff applied for unemployment insurance benefits with the Department of Employment Security. American protested, alleging that plaintiff was ineligible because she was “discharged for misconduct connected with [her] work,” under the Unemployment Insurance Act, 820 ILCS 405/602(A). Following a hearing, a Department referee denied plaintiff’s application. The Board of Review affirmed. The circuit court reversed, finding that the actions which led to plaintiff’s discharge did not constitute “misconduct” under the strict statutory definition. The appellate court reversed. The Illinois Supreme Court reinstated the circuit court decision, finding no illegal or intentionally tortious conduct, nor evidence of a deliberate rule violation. View "Petrovic v. Dep't of Emp't Sec." on Justia Law

The Chicago Board of Education and the Teachers Union 2007-2012 collective bargaining agreement (CBA) established a grievance procedure that culminated in binding arbitration. In 2010, the Board notified the Union of a new policy: designating as ineligible for rehire probationary appointed teachers (PATs) who have been non-renewed twice, or have had an unsatisfactory performance rating. The Board began implementing this policy and notified PATs that they were being non-renewed, but did not inform them that it had placed a “do not hire” (DNH) designation in their personnel files. The Union presented grievances and demanded arbitration. The Board refused to arbitrate, claiming that Board hiring decisions were exclusive management rights. The Illinois Educational Labor Relations Act found that, under the Act and the CBA, the Board had a duty to arbitrate the DNH grievances and, by refusing, had violated 115 ILCS 5/14(a)(1). The appellate court reversed. The Illinois Supreme Court affirmed. PATs are employed for a single school-year; the Board alone is vested with selection of such employees as a matter of inherent managerial policy. The policy of placing a DNH designation in PAT files following two nonrenewals or an unsatisfactory performance rating was within the Board’s authority because it directly relates to its exclusive right to determine hiring guidelines. View "Bd. of Educ. of the City of Chicago v. Ill. Educ. Labor Relations Bd." on Justia Law

From 1966-1970, Folta was a shipping clerk and product tester for Ferro Engineering and was exposed to products containing asbestos. In 2011, Folta was diagnosed with mesothelioma, a disease associated with asbestos exposure. He sued Ferro, alleging negligence. Ferro moved to dismiss under ILCS 5/2-619(a)(9), arguing that the claimswere barred by the exclusive remedy provisions of the Workers’ Compensation Act (820 ILCS 305/5(a)) and the Workers’ Occupational Diseases Act (820 ILCS 310/5(a)). Ferro maintained that his action fell outside the exclusive remedy provisions because his claims were not “compensable” under the statutes: the symptoms did not manifest until more than 40 years after his last exposure to asbestos, and any potential asbestos-related compensation claim was barred under the 25-year limitation provision. The circuit court dismissed, holding that the action was barred by the exclusive remedy provisions. The appellate court reversed, reasoning that the term “compensability” must relate to the “ability to recover under the Act.” The Illinois Supreme Court reinstated the dismissal, noting that the acts do not prevent an employee from seeking a remedy against other third parties for an injury or disease and that Folta had also sued manufacturers. View "Folta v. Ferro Eng'g" on Justia Law

In December, 2009, Heelan, a Vernon Hills police officer for approximately 20 years, responded to an emergency call, slipped on ice, and fell. He was ultimately diagnosed with significant osteoarthritis in both hips, aggravated by the fall, and had two hip replacement surgeries. He did not return to work. The Village Police Pension Board awarded a line-of-duty disability pension, 40 ILCS 5/3-114.1. The Village sought a declaration that it was not obligated to pay Heelan’s health insurance premium under the Public Safety Employee Benefits Act (the Act), 820 ILCS 320/10. The circuit court entered judgment in favor of Heelan. The appellate court and Illinois Supreme Court affirmed, Proof of a line-of-duty disability pension establishes a catastrophic injury under section 10(a) of the Act as a matter of law; a public safety officer’s employer-sponsored health insurance coverage expires upon the termination of the officer’s employment by the award of the line-of-duty disability pension. The Act lengthens such health insurance coverage beyond the termination of the officer’s employment. View "Village of Vernon Hills v. Heelan" on Justia Law

Illinois law requires that every bag labeled as containing a certain weight of seeds actually weigh that amount. Precision discovered that an outgoing load of seed was underweight and began randomly checking bags. Latr, Dudley was terminated after admitting he had tampered with a forklift. After Dudley’s unemployment compensation application was denied, Hohman, Kluemke, and Michael began weighing bags without Precision’s instruction or knowledge. They found light bags and provided information to Dudley, who reported to the Department of Agriculture. Inspectors found underweight bags and issued stop sale orders. The company stopped production for 10 days while all employees, working around the clock, weighed all bags and brought them up to the proper weight. According to Hohman, management stated “If we find out that anybody in this company had anything to do with us being turned in … it will result in termination.” The Department ended its investigation without penalties or fines. Hohman was subsequently terminated for engaging in horseplay with a forklift. Subsequently, Precision eliminated 22 positions across eight holding companies because of a business slowdown. Kluemke and Michael were two of four Nashville, Illinois employees terminated. Precision asserted that management chose Michael because he spent too much socializing, needed a more diverse skill set, and did not want to perform certain tasks; Kluemke had poor attitude. In a retaliatory discharge case, the Illinois Supreme Court reinstated the trial court’s judgment in favor of the company. Retaliatory discharge claims are a narrow exception to the general rule that employees are at-will. If an employer comes forward with a valid, nonpretextual reason for an employee’s discharge and the trier of fact believes it, there can be no causation in a retaliatory discharge claim. View "Michael v. Precision Alliance Grp., LLC" on Justia Law

Burge was a Chicago police officer, 1970 to 1993, and served as supervisor of the violent crimes unit. In 1997, Burge was granted pension benefits by the Policemen’s Annuity and Benefit Fund of Chicago. A 2003 civil rights lawsuit alleged torture and abuse by officers under Burge’s command. Burge denied, under oath, having any knowledge of, or participation in, the torture or abuse of persons in custody. In 2008, Burge was convicted of perjury, 18 U.S.C. 1621(1), and obstruction of justice, 18 U.S.C. 1512(c)(2), and sentenced to four and one-half years’ imprisonment. His convictions were affirmed. Burge has not been indicted for conduct which occurred while he was still serving on the Department. In 2011, the Board held a hearing to consider whether, under the Illinois Pension Code, 40 ILCS 5/5-227, Burge’s pension benefits should be terminated because of his federal felony convictions. Section 5-227 states that “[n]one of the benefits … shall be paid to any person who is convicted of any felony relating to or arising out of or in connection with his service as a policeman.” Burge maintained that his felony convictions related solely to the giving of false testimony in a civil lawsuit filed years after his retirement from the force. The divided Board concluded that “the motion was not passed.” “Burge continued to receive benefits. No administrative review was sought. The Attorney General, on behalf of the state, sued Burge and the Board, under section 1-115 of the Pension Code. The trial court held that deciding whether to terminate Burge’s pension was a “quintessential adjudicative function” that rested exclusively within the original jurisdiction of the Board, subject to review under the Administrative Review Law. The appellate court reversed. The Illinois Supreme Court reversed, reinstating the dismissal.Burke View "Madigan v. Burge" on Justia Law

Public Act 97-695 (eff. July 1, 2012), amended section 10 of the State Employees Group Insurance Act of 1971, 5 ILCS 375/10, by eliminating the statutory standards for the state’s contributions to health insurance premiums for members of three of the state’s retirement systems. The amendment requires the Director of Central Management Services to determine annually the amount of the health insurance premiums that will be charged to the state and to retired public employees. It is not limited to those who become annuitants or survivors on or after the statute’s effective date. The amendment was challenged by members of the affected entities: State Employees’ Retirement System (SERS), State Universities Retirement System (SURS), and Teachers’ Retirement System (TRS), as violation the pension protection clause, the contracts clause, and the separation of powers clause of the Illinois Constitution. Certain plaintiffs added common-law claims based on contract and promissory estoppel. The Illinois Supreme Court, on direct review, reversed dismissal, stating that health insurance subsidies are constitutionally protected by the pension protection clause and rejecting an argument that only the retirement annuity itself is covered. View "Kanerva v. Weems" on Justia Law

The Illinois Department of Labor sent Jack’s Roofing a notice of investigation of possible violation of the Employee Classification Act, 820 ILCS 185/3.25 by misclassifying employees as independent contractors. Jack’s provided the Department with requested information. Preliminary determination found misclassification of 10 individuals for eight to 160 days and calculated a potential penalty of $1,683,000. The Department requested a response within 30 days for consideration before final determination. Less than a month later, the Department sent notice of a second investigation Jack's sought injunctive relief and a declaratory judgment that the Act is unconstitutional as violating: the special legislation clause of the Illinois Constitution because it subjects the construction industry to more stringent employment standards than other industries; the due process clauses of the U.S. and Illinois Constitutions because it does not provide an opportunity to be heard and is impermissibly vague; the U.S. Constitution's prohibition against bills of attainder because it is a legislative act that inflicts punishment without a judicial trial; and the equal protection clauses of both constitutions because no other industry is subjected to the same standards when seeking to hire independent contractors. On remand, the court denied relief, finding the Act valid and enforceable. The appellate court affirmed. The Illinois Supreme Court affirmed in part, rejecting facial constitutional challenges. A procedural due process challenge to enforcement provisions has been rendered moot by the recent amendments to the Act, which must be applied to plaintiffs in the future. The court also affirmed that section 10 of the Act is not unconstitutionally vague. Remaining constitutional challenges to the Act were forfeited. View "Bartlow v. Costigan" on Justia Law