LABOR BOARD UPHOLDS ALJ DECISION – $3.1 MILLION BACKPAY AWARD ERASED
Legal updates
LABOR BOARD UPHOLDS ALJ DECISION – $3.1 MILLION BACKPAY AWARD ERASED
September 9, 2015
Throughout the year, we have been keeping our clients apprised about the stunning news that a compliance officer at the Illinois Labor Relations Board had directed the Village of Oak Lawn to pay approximately $3.1 million in backpay and interest for allegedly understaffing its fire department. In June, we reported that an Administrative Law Judge issued a recommended decision and order which nullified the backpay award in its entirety.
Not surprisingly, the IAFF quickly filed exceptions and asked the Labor Board to reinstate the original decision entered by the compliance officer. During its September 9 meeting, the Labor Board voted unanimously to adopt the ALJ’s recommended decision and order. The Board awarded a small amount of interest to the firefighter’s union, but the interest awarded is less than 1% of the compliance officer’s original decision. A written decision will be issued by the Labor Board at a later date.
This is a tremendous victory for the Village of Oak Lawn and its taxpayers. We hope that this is a harbinger that the current Labor Board will be willing to give management interests a fair chance in future cases.
The Village of Oak Lawn was represented by attorneys from Clark Baird Smith LLP, and by its municipal counsel, Peterson, Johnson, & Murray LLP.
This case remains an important reminder about the dramatic impact that minimum staffing can have on a municipality’s finances. If you have any questions about this important decision, or minimum staffing issues generally, please contact a Clark Baird Smith LLP attorney to discuss strategies you can use to maximize your chances of success while limiting potential staffing liability.
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