Opinion ID: 1097451
Heading Depth: 1
Heading Rank: 1

Heading: Constitutional Mandates Relative to Reallocation Procedures

Text: The resolution of the issues presented involves two separate and distinct constitutional questions. First, we must determine if Article X, § 8(A) applies to reallocation decisions, and thus accords the procedural rights plaintiffs seek. If not, then we must determine if the reallocation procedures adopted by the Commission satisfy Article I, § 2 and its notions of procedural due process. In arguing that plaintiffs are entitled to the protections of Article X, § 8(A), counsel for the plaintiffs relies on the case of Perkins v. Director of Personnel, 220 So.2d 253 (La.App. 1st Cir.1969), and various sections of the Civil Service Rules. In Perkins, supra, the court held that a civil service employee whose position was reallocated to a lower class was demoted within the meaning of the then constitutional provision requiring the appointing authority to give the employee pre-reallocation notice in writing and an opportunity to be heard. In reaching its conclusion, the court, relying on CSR 1.11, 1.25 and 1.32, equated the terms demotion and reallocation, and found that these procedural safeguards were required by Article XIV, § 15(N)(1) which provided: No person in the State or Classified Service, having acquired permanent Civil Service status, shall be demoted ..., except for cause, expressing in writing.... La. Const, art. XIV, § 15(N)(1) (1921 version, superceded by La. Const, art. X, § 8(A) (1977)) (emphasis added). This reliance is misplaced. Article XIV, § 15(N)(1) was not carried over in the 1974 Constitution. The substance of that article is now contained in Article X, § 8(A). In essence, civil service employees are now only granted the right to pre-deprivation notice in writing and a hearing in disciplinary actions. [5] Our question becomes whether a reallocation is a disciplinary action within the meaning of our present constitution. For the following reasons, we conclude that it is not. Having reviewed the entire scheme of the Civil Service Rules, demotions and reallocations are mutually exclusive actions. Demotion is defined as a change of a permanent or probationary employee from a position of one class to a position of another class for which a lower minimum rate of pay is prescribed. CSR 1.11. Reallocation is defined as a change in the allocation of a position from one class to another class wherein the duties of the position have undergone a change. CSR 1.32. Plaintiffs argue that a reallocation by definition is a demotion, and that as a demotion, it encompasses the procedures outlined in CSR 12.1 et seq., the provisions dealing with disciplinary actions. Since Chapter 12 of the Rules provides the same procedural protections as Article X, § 8(A), by implication plaintiffs argue that this article is also applicable. This argument is without merit. It is without question that by virtue of the reallocation plaintiffs were demoted within the meaning of the term as defined in CSR 1.11. Additionally, it is without question that a demotion is a disciplinary action, see CSR 12.1 et seq., and therefore entitled to the procedural protections of both the Civil Service Rules and Article X, § 8(A). However, plaintiffs' reasoning falters when they argue that a reallocation, merely because of semantics, is entitled to the same procedural protections under Article X, § 8(A) as are other disciplinary actions. We conclude that it is the substantive nature of the action, rather than its definition, which is controlling. Reallocation is not a disciplinary sanction. The Director's recommendation of a reallocation is in no way dependent on the job performance of the employee. The Director is merely fulfilling his duty to provide a system of uniform pay based on classification of job activities. CSR 3.1(p). His decision to reallocate an employee is based on an analysis of the duties performed (as distinguished from the competency of the performance). Upon determining what duties an employee actually performs, the Director then merely looks to the job description of respective classes to determine into which class the employee is to be situated. Perkins, supra, was correct, and our present constitution does not change the holding, that in situations where an employee is demoted (a disciplinary action under CSR 12.1 et seq.), Article X, § 8(A), as well as the Civil Service Rules, require that there be pre-discipline notice in writing setting forth the cause for the action, and a hearing. Perkins, supra, was incorrect in concluding that a reallocation is a demotion, therefore giving rise to the same procedural protections. To this extent, Perkins, supra, is overruled. Because Article X, § 8(A) by its very terms does not provide plaintiffs the procedural protections they seek, we must determine whether Article I, § 2, and its embodiment of traditional notions of procedural due process, requires in a reallocation situation both pre-reallocation notice in writing setting forth the grounds for the decision and an opportunity to be heard. We first turn to a description of the procedures relative to a reallocation of an employee, and thereafter consider the factors bearing on the constitutional adequacy of these procedures. Under the present version of the Rules, the provisions relative to reallocation provide for the following procedures. It is the duty of the Director to develop and propose to the Commission uniform classification and pay plans and amendments thereto. CSR 3.1(p). In fulfillment of his duty, the Director shall cause to be prepared a classification plan, which plan shall consist of job specifications, designated by standard titles, designed to provide for all positions in the classified service. CSR 5.1(a). After the adoption of the plan, the Director shall allocate each position in the classified service to its appropriate class, and may reallocate positions from class to class. CSR 5.2(a). There is no provision for a pre-reallocation notice in writing of the cause of the reallocation to be sent to the affected employee, nor is there a provision for a pre-reallocation hearing. Upon notice of the reallocation decision of the Director, an employee affected by the reallocation shall be afforded a reasonable opportunity to have his case reviewed by the Director, and the Director's decision shall be final unless the employee is accorded a right to appeal to the Commission. CSR 5.3(a) (emphasis added). An employee is basically granted a right of appeal to the Commission of the Director's review of the reallocation if: (a) the employee has failed to obtain the requested relief from the reallocation after the request for review provided in CSR 5.3(a), and there are allegations that the Director's decision has been discriminatory; or (b) the employee alleges that he has been deprived of any right by the violation of a Civil Service Rule; or (c) as otherwise provided. (Other situations which allow a right to appeal are not at issue in this case.) CSR 13.10 (emphasis added). In the present case, plaintiffs appealed the reallocation to the Director pursuant to CSR 5.3. After two desk audits, the Director affirmed the reallocation. Plaintiffs appealed the decision to the Commission under CSR 13.10, alleging that the Director's decision was the result of discrimination, and that the Director had violated CSR 1.32. The second issue is still on appeal before the Commission. The merits of the discrimination allegation will be discussed later in this opinion. At this point we will address plaintiffs' contention that the due process clause of the Louisiana Constitution, Article I, § 2, requires that they receive pre-reallocation notice in writing setting forth the grounds for the action and an opportunity to be heard. For the following reasons, we disagree and hold that in a reallocation determination an employee is not entitled to either a pre-reallocation notice or an opportunity to be heard. In this respect, the Rules adopted by the Commission relative to reallocations do not violate Article I, § 2, and its notions of procedural due process. The provisions of the state constitution involving the Civil Service, Article X, § 1 et seq., and the Rules of the Commission are designed to secure adequate protection to the public career employee from political discrimination. They embrace the merit system, and their intent is to preclude favoritism. The purpose of the Civil Service Rules is to guarantee the security and welfare of the public service. Sanders v. Department of Health & Human Resources, 388 So.2d 768 (La.1980) (emphasis added). With this in mind, it is clear that tenure or classified civil service status is a property right within the meaning of Article I, § 2 of our constitution, a prerequisite to a due process challenge. Delta Bank & Trust Co. v. Lassiter, 383 So.2d 330 (La. 1980). Under our constitution and the Civil Service Rules, an employee who has gained classified permanent civil service status has an entitlement to his position, since he has already received the position, and applicable law guarantees him continued employment, save for some exceptions (i.e. disciplinary sanctions for cause). Cleveland Bd. of Educ. v. Loudermill, supra ; Arnett v. Kennedy, 416 U.S. 134, 94 S.Ct. 1633, 40 L.Ed.2d 15 (1974); Perry v. Sindermann, 408 U.S. 593, 92 S.Ct. 2694, 33 L.Ed.2d 570 (1972); Board of Regents of State Colleges v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972). Having concluded that a classified permanent employee enjoys a property right in maintaining his status, it is axiomatic that his position may not be changed or abolished without due process of law. Cleveland Bd. of Educ., supra . The question becomes what process is due. The decisions of the United States Supreme Court, as well as the jurisprudence of this state, underscore the trueism that `[d]ue process,' unlike some legal rules, is not a technical conception with a fixed content unrelated to time, place and circumstances. Mathews v. Eldrige, 424 U.S. 319, 96 S.Ct. 893, 47 L.Ed.2d 18 (1976). It is a flexible standard and calls for such procedural protections as the particular situation demands. Morrissey v. Brewer, 408 U.S. 471, 92 S.Ct. 2593, 33 L.Ed.2d 484 (1972). It is particularly flexible in the area of administrative law. See Smith v. Division of Admin., 415 So.2d 381 (La.App. 1st Cir.1982); Hamilton v. La. Health & Human Resources Admin., 341 So.2d 1190 (La.App. 1st Cir.1976), writ refused 344 So.2d 4 (La.1977). Where the power of the government or an agency is to be used against an individual there is a right to a fair procedure to determine the basis for, and the legality of, such action. Nowak, J., et al., Handbook on Constitutional Law, Ch. 15, p. 477 (1978). Our determination of the scope of procedural due process protections in a reallocation situation requires consideration of three distinct factors: First, the private interest that will be affected by the official action; second, the risk of an erroneous deprivation of such interest through the procedures used, and the probable value, if any, of additional or substitute procedural safeguards; and finally, the Government's interest, including the function involved and the fiscal and administrative burdens that the additional or substitute procedural requirement would entail. See, e.g., Goldberg v. Kelly, supra, 397 U.S. [254], at 263-271, 90 S.Ct. [1011], at 1018-1022 [25 L.Ed.2d 287 (1970)]. Mathews, 424 U.S. at 335, 96 S.Ct. at 903, 47 L.Ed.2d at 33 (cited with approval in Cleveland Bd. of Educ., ___ U.S. at ___, 105 S.Ct. at 1491, fn. 2). First, the significance of the private interest in retaining a previous level of earning capacity cannot be gainsaid. Such interests are the same in both a reallocation situation and a disciplinary action. In both, an employee will be deprived of a certain amount of their pay. Courts have frequently recognized the severity of depriving a person of income. Cf. Cleveland Bd. of Educ., supra, and authorities cited therein. However the similarity between reallocations and disciplinary actions ends when one considers the mechanics of both as they relate to the chance for an erroneous decision. Unlike disciplinary actions, a reallocation is not the result of an evaluation of the job performance of an employee. It does not center on any facts surrounding the employee whatsoever. A reallocation is the result of an internal decision made by the Director after reviewing the job duties of an employee and comparing them with previously outlined job classifications. In this regard, there is little chance for an erroneous decision. Procedural due process concerns are lessened in a reallocation situation as opposed to a disciplinary action. Our constitution in Article X, § 8(A) recognizes this distinction, and we believe that the distinction is also valid under Article I, § 2. In disciplinary actions, due process concerns are heightened since the focus in such actions is in the individual employee. Evidence is taken, and the Director then enters a decision based on his findings. Meaningful procedural due process notions are furthered by allowing pre-deprivation (disciplinary action) notice in writing setting forth the causes for the action, and an opportunity to be heard. By providing an employee with these minimal procedural protections, an employee can prepare a defense, call witnesses on his own behalf, testify himself, and cross examine opposing witnesses. These protections diminish the possibility of an erroneous deprivation prior to its occurrence. Such concerns are not meaningful in a reallocation. As alluded to, in a reallocation, there is no evidence taken. There are no witnesses, and the employee need not prepare a defense. The Director determines if reallocation is warranted based on the job duties of the employee and the job specifications stated in the classification system. At this point in the procedure, no meaningful application of the due process notions of notice and opportunity to be heard would be gained. See Cleveland Board of Education, supra. It is when the focus of the reallocation changes to considerations of the employee (i.e. allegations of discrimination), or when there are allegations of a Rules violation, that notice and an opportunity to be heard crystalize into something meaningful. Article I, § 2 would require that at this point there be these minimal procedural protections. The Civil Service Rules satisfy Article I, § 2 in that they do provide for a review of the Director's actions by a neutral decisionmaker upon allegations of discrimination and/or a Rules violation. It is at this point that the neutral decisionmaker can assure that an employee's substantive due process rights have not been deprived without just cause. [6] Any benefit from a substitute procedure, requiring both pre-reallocation notice and an opportunity to be heard, would be outweighed by the burdens it would place on the system. Were an employee entitled to notice and a hearing in every reallocation, the maintenance of a uniform pay system would be jeopardized. Plaintiffs are sufficiently protected under the present scheme. In closing, we note that there seems to be an emerging concept that in some instances due process is fulfilled by a post deprivation hearing. Cleveland Bd. of Educ., ___ U.S. at ___, 105 S.Ct. at 1493, 84 L.Ed.2d at 503 (citing with approval Ewing v. Mytinger & Casselberry, 339 U.S. 594, 70 S.Ct. 870, 94 L.Ed. 1088 (1950); North American Cold Storage Co. v. Chicago, 211 U.S. 306, 29 S.Ct. 101, 53 L.Ed. 195 (1908)). We believe that this view to procedural due process in certain situations is sound and is in support of our decision here. Prior to allegations of some improper actions on the part of the Director, there is no need for review. Upon allegations supporting a right of appeal, a right of review is accorded to a neutral decisionmaker. During the pendency of these actions, and for a period of two years, a downwardly reallocated employee's pay is frozen. While he no longer earns merit raises in the former pay range, he does earn the increases at his new (lower) pay range. CSR 6.28(b). It can be said that during these proceedings an employee has not been deprived of a significant property right, a prerequisite to any heightened due process inquiry. The high Court in Cleveland Bd. of Educ., supra, dealt with a termination situation where the affected employee would lose his pay immediately. The high Court relied strongly on this fact in support of its decision requiring pre-deprivation notice and a hearing. For the reasons stated herein, the same considerations are not present in a reallocation.