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California Supreme Court to Decide “Vesting” Issue Regarding Retiree Health Benefits

Retired Employees v. County of Orange (9th Cir. 09-56026 6/29/10) Since approximately 1966, Orange County has provided health care benefits to its retired employees. In 1985, the County began “pooling” the retired employees with the active employees in the rate-setting process. Because retirees generally require more health services than active employees, who are generally younger and healthier, pooling the two groups allowed retirees to pay lower premiums and receive greater coverage than they otherwise would. As the cost of health care continued to rise over the years, the County found its employee health plans underfunded and needing adjustment. On September…

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Vallejo Repeals Binding Interest Arbitration

... But Not All the Votes Are Counted Yet ....It looks like the voters in the City of Vallejo have repealed the City charter provision requiring binding interest arbitration to resolve collective bargaining disputes.  Although it was initially reported that Measure A had passed, the Times Herald was reporting as of this afternoon that thousands of mail-in and provisional ballots remain to be counted. (See article here.)  According to the Solano County Registrar's website, Measure A is currently ahead by 454 votes (7014 to 6065). Assuming that the measure passes, it may be a harbinger of things to come.  In 1970, Vallejo became…

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Carlsbad Imposes Reduced Pension Benefits on New Firefighters

There was an interesting story out of Carlsbad last week.  (See articles in the North County Times here and here.)  The Carlsbad City Council voted to impose a two-tiered retirement system on its firefighters after reaching impasse in bargaining.  Under the two-tiered retirement system, existing employees will continue to accrue benefits under the 3% at 50 formula that is widely used in public safety.  However, new firefighters will be under a 2% at 50 formula.  According to the article, the move was necessitated to keep Carlsbad in "good fiscal health."  What is interesting is that the city is also planning a ballot initiative that…

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Public Safety Employer-Employee Cooperation Act of 2009: What California Public Employers Need to Know

According to some reports, the Senate may be voting on S. 3194 as early as this week as part of a larger appropriations bill. S. 3194 is titled the “Public Safety Employer-Employee Cooperation Act of 2009” and would establish collective bargaining for state and local firefighters, police officers, and paramedics throughout the nation. Currently, state and local employees are excluded from the National Labor Relations Act (NLRA). Under S. 3194, state and local public safety employees would come under the jurisdiction of the Federal Labor Relations Authority (FLRA). Upon enactment, the FLRA would have 180 days to determine, “whether a…

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Supreme Court to Review State Furlough Case

California Attorneys, Administrative Law Judges and Hearing Officers in State Employment v. Schwarzenegger (2010) 182 Cal.App.4th 1424, review granted, 106 Cal.Rptr.3d 702.The California Supreme Court has granted review in CASE v. Schwarzenegger. Pursuant to the order granting review, the issue before the Court is, “Does the Governor have the authority to furlough the state employees at issue in this case by executive order?” While this sounds like something that might have far-reaching effect throughout the state, the reality is that the decision will likely be much more limited. In CASE v. Schwarzenegger, the issue is whether the Governor’s furlough authority extends…

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