San Francisco Superior Court judge Charlotte Woolard affirmed her tentative decision exempting all State Compensation Insurance Fund employees from the governor’s furlough. At the conclusion of a scheduled hearing, the judge was not convinced by the administration’s arguments.
While SEIU members comprise the bulk of State Fund employees—6,260 total, President Janet Frank also filed a cross complaint asking the court to exempt all SCIF employees including those not represented by SEIU or a union. Woolard’s decision also applies to them.
“It applies to all State Fund employees,” says Jennifer Vargen, spokeswoman for SCIF. “The cross complaint was heard and she ruled in favor of Jan Frank on behalf of State Fund.”
SCIF has 7,800 total employees, but the attorneys were already exempted under a prior ruling.
“We’re gratified that the court recognized our autonomy,” Vargen says, adding that furloughing SCIF employees provides no savings to the state.
“We want to recognize State Fund employees and their continuous service during this process,” Vargen says.
In her ruling, Woolard affirmed that the furloughs do not apply to State Fund because of Insurance Code section 11873(c), which states that, “Notwithstanding any provision of the Government Code or any other provision of law, the positions funded by the State Compensation Insurance Fund are exempt from any hiring freezes and staff cutbacks otherwise required by law.”
Woolard ruled that a furlough causes a reduction in staff and therefore constitutes a staff cutback.
The governor’s office was less than enthusiastic about the ruling.
“The governor’s authority to furlough workers is clear and has been upheld in several other court cases,” says Mike Naple, spokesman for Governor Schwarzenegger. “We will appeal the ruling.”
Monica Ahuja, staff attorney with SEIU, tells Workers’ Comp Executive that the next step is to get the automatic stay lifted by citing irreparable harm to employees before the administration appeals. A hearing is set for Sept. 10.
“This is so [employees] are not subject to more furlough days. We don’t think the governor will appeal before then, but we want to get ahead of the game,” Ahuja says.
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