Michigan Coalition of State Employee Unions v. Michigan

The Michigan Coalition of State Employee Unions and others brought an action in the Court of Claims against the State and various state agencies and officers, alleging that portions of 2011 PA 264, which amended the State Employees’ Retirement Act (SERA, MCL 38.1 et seq.), were unconstitutional because the resulting changes to retirement benefits altered rates of compensation or conditions of employment, which were within the exclusive authority of the Civil Service Commission to regulate. The Court of Claims granted plaintiffs’ motion for summary judgment. The Court of Appeals affirmed in part, reversed in part, and remanded, holding that SERA retirement benefits were properly classified as both “rates of compensation” and “conditions of employment,” neither of which was subject to legislative alteration. The Supreme Court reversed. "While the [Civil Service Commission] has considerable constitutional powers to manage the civil service system and to preserve its sphere of constitutional authority, the commission has no legislative powers. It may neither enact legislation nor revise an enactment, nor may it dictate that the Legislature repeal or modify an enactment. Therefore, we hold that because the commission has acquiesced in the application of SERA to the employees of the civil service system, plaintiff’s objections fail to establish a basis for relief." View "Michigan Coalition of State Employee Unions v. Michigan" on Justia Law