dailynews

Appellate court rejects reduction in Michigan school employee pay

Legislation called for state to redirect 3% of employees' pay for retiree health care
Aug. 17, 2012

From The Detroit News: The Michigan Court of Appeals has ruled that a 3 percent reduction in public school employee paychecks violates multiple constitutional rights. The decision upholds a lower court's ruling in a legal victory for teacher unions. The lawsuit, brought by the American Federation of Teachers Michigan and affiliated local unions, challenged the provision of a 2010 law that captured 3 percent of school employee wages to pay for retiree health care — without guarantee that workers will enjoy the same benefits in retirement. The judges said the state cannot require "a small subset of Michigan's population to surrender 3 percent of their wages, above and beyond that which they pay in taxation, with no guarantee of anything in return, to meet the government's obligations to other individuals."

Sign up for American School & University Newsletters