Says Governor is solely responsible for decision not to pay
Harrisburg, PA – Thursday, July 16, 2009, State Senator John H. Eichelberger, Jr. today called on Governor Rendell to continue to pay state employees in spite of the lack of a budget for the 2009-2010 fiscal year.
“The Senate is continuing to pay our employees because we believe if people work, they should be paid,” Eichelberger said. “Additionally, other entities such as the Turnpike Commission, Pennsylvania Liquor Control Board, etc are all going to continue being paid. The only employees that are going to see their paychecks stopped are those that are under the direct purview of the Governor.”
Senator Eichelberger attached a letter that he has been sending to interested state employees detailing a legal opinion that the Governor should continue to pay state employees even without a budget being in place. Many state employees will receive a partial paycheck on Friday, July 17.
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Dear State Employee:
I share your concerns with the budget process and Governor Ed Rendell’s unilateral decision to
unnecessarily withhold pay from approximately 70,000 state workers. Since taking office in 2003, Governor Rendell has ignored the constitutionally required deadline for signing a budget into law every year except for his first budget in 2003. Starting in 2007, he issued his first of three differing legal opinions relating to the operation of government during a budget impasse. As you are aware, in 20O7 Governor Rendell unnecessarily furloughed approximately 25,000 state employees for one day relying on his interpretation of the requirements of the federal Fair Labor Standards Act (FLSA) and the Pennsylvania Constitution. At that time, the Senate Republican Caucus challenged Governor Rendell’s position by relying on Council 13, AFSCME v. Casey, a 1993 Commonwealth Court decision. In Casey, the Court interpreted the FLSA to allow for
the continued employment of state employees with pay in the absence of an appropriations act
despite the requirements of the Pennsylvania Constitution. Then in 2008, Governor Rendell again
threatened the use of a furlough, but withdrew that threat when a budget was agreed to in early July.
In May 2009 Governor Rendell communicated with state employees that he had abandoned his
furlough plan that he espoused in2007 and 2008 and has instead interpreted a July 2008 single
judge Commonwealth Court decision to allow for the return of “payless paydays” last seen in 1991.
This one-judge opinion overturned the Court’s decision in Caseyto prohibit the expenditure of
funds in the event of a budget impasse which extends beyond the expiration of the fiscal year.
The labor unions representing state employees, including AFSCME and SEIU, have appealed the
July 2008 decision to the Pennsylvania Supreme Court arguing that the FLSA permits continued
emplovment of state emplovees with pav. The Chairs of the Senate Labor and Industry Committee
and State Government Committee submitted a “friend of the court” brief in favor of the unions’
position and I eagerly await a favorable decision by the Court. lf the Court does not overturn that
decision, it is possible that the Commonwealth may be subject to a federal legal action commenced
by the U.S. Secretary of Labor that would require the payment of double damages for unpaid
wages.
I strongly believe that all Commonwealth employees should receive timely payment for their
services. I also find it extremely reckless and irresponsible that Governor Rendell would once
again use state employees as pawns during the budget process.
You may be aware that several financial institutions are offering assistance to state employees
through this difficult time. General information on these loan programs is attached.
I hope that we can arrive at a responsible budget agreement quickly.
Best regards,
John H. Eichelberger, Jr.
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