Third Circuit rules in Pennsylvania case unanimously affirming the district court's decision
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Welcome to Union Station, our weekly newsletter that keeps you abreast of the legislation, national trends, and public debate surrounding public-sector union policy.
** THIRD CIRCUIT: PENN. PUBLIC-SECTOR WORKER NOT ENTITLED TO REFUND FOR PREVIOUSLY PAID DUES
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On Oct. 7, a three-judge panel of the U.S. Court of Appeals for the Third Circuit ruled ([link removed]) that a former public-sector union member in Pennsylvania is not entitled to a refund for dues she paid before withdrawing from the union.
Who are the parties to the suit?
The plaintiff is Shalea Oliver, a Pennsylvania state employee. Attorneys from the Liberty Justice Center are representing her. The Liberty Justice Center ([link removed]) describes itself as a nonprofit that "fights for the constitutional rights of American families, workers, advocates, and entrepreneurs."
The defendants are the Service Employees International Union (SEIU) Local 668 and the following individuals in their official capacities:
* Teresa Miller (Secretary of the Pennsylvania Department of Human Services)
* Michael Newsom (Secretary of the Pennsylvania Office of Administration)
* Josh Shapiro (Attorney General)
* James M. Darby, Albert Mezzaroba, and Robert H. Shoop, Jr. (members of the Pennsylvania Labor Relations Board)
What is at issue?
Oliver, who was hired in 2014, voluntarily joined SEIU Local 668, the exclusive bargaining representative of her employment unit, as a dues-paying member. On June 27, 2018, the U.S. Supreme Court issued its ruling in Janus v. AFSCME ([link removed]) , finding that public-sector unions cannot compel the non-member employees they represent to pay fees to cover the costs of non-political union activities. Doing so, the court determined, violates employees' First Amendment rights.
On Aug. 10, 2018, Oliver resigned from SEIU Local 668 and rescinded her authorization for having union dues deducted from her paychecks. SEIU Local 668 accepted Oliver's resignation and refunded the dues withheld from her paychecks after Aug. 10, 2018.
On Feb. 28, 2019, Oliver sued ([link removed]) the union and state officials in the U.S. District Court for the Eastern District of Pennsylvania, seeking restitution for all dues paid to the union since she first joined in 2014. Oliver argued "she was forced into an unconstitutional choice between paying Local 668 as a member or paying it as a non-member." Oliver also alleged that state officials had violated her free-speech and associational rights when they recognized SEIU Local 668 as the exclusive representative for her bargaining unit.
On Nov. 12, 2019, Judge Gerald Austin McHugh, Jr., ruled in favor of the defendants, dismissing Oliver's claim. McHugh was appointed to the bench by President Barack Obama (D). Oliver appealed the decision to the Third Circuit.
How did the court rule?
The three-judge panel – Judges Brooks Smith ([link removed]) , Theodore McKee ([link removed]) , and Kent Jordan ([link removed]) – unanimously affirmed the district court's decision. Writing for the court, Smith said:
Shalea Oliver had the choice either to become a member of the Service Employees International Union Local 668 (“the Union”)—the exclusive collective bargaining representative for her unit—by paying monthly union dues or to decline membership yet pay “fair-share” or “agency” fees. Oliver chose to become a union member.Because Oliver chose to join the Union when she was not compelled to do so, her membership was voluntary; thus, she is not entitled to a refund of membership dues. Because a state is permitted by statute and case law to grant a labor union exclusive representation rights, and Oliver need not associate with that union, we conclude that Oliver’s free speech and free association rights were not violated. Since the District Court came to these same conclusions in granting summary judgment to the defendants, we will affirm.
Smith and Jordan are George W. Bush (R) appointees. McKeey is a Bill Clinton (D) appointee.
About the Third Circuit
The U.S. Court of Appeals for the Third Circuit ([link removed]) is a federal court that hears appeals from the district courts in Delaware, New Jersey, and Pennsylvania. The court has 14 authorized judicial posts and no current vacancies. The chief judge is Brooks Smith, a George W. Bush appointee. Of the court's 14 active judges, Republicans appointed eight and Democrats appointed six. Appeals are heard in the James A. Byrne Federal Courthouse in Philadelphia.
What comes next?
Oliver's attorneys have not said publicly whether they intended to appeal the decision. The case name and number are Oliver v. Service Employees International Union Local 668 ([link removed]) (19-3876).
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** WHAT WE ARE READING
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* Yankee Institute for Public Policy, "Hartford teachers’ union drops lawsuit against its own employees over retirement benefits," Oct. 6, 2020 ([link removed])
* New Jersey 101.5, "Appeals court hears from teachers who don't want to pay NJEA," Oct. 4, 2020 ([link removed])
* Bloomberg Law, "Public Sector Unions Brace for Legal Threats at Supreme Court," Oct. 1, 2020 ([link removed])
* Local10.com, "Miami-Dade teachers union seeks PPE donations, other supplies for teachers ahead of school reopening," Oct. 1, 2020 ([link removed])
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** THE BIG PICTURE
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** _NUMBER OF RELEVANT BILLS BY STATE_
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We are currently tracking 102 pieces of legislation dealing with public-sector employee union policy. On the map below, a darker shade of green indicates a greater number of relevant bills. Click here ([link removed]) for a complete list of all the bills we're tracking.
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** _NUMBER OF RELEVANT BILLS BY CURRENT LEGISLATIVE STATUS_
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** _NUMBER OF RELEVANT BILLS BY PARTISAN STATUS OF SPONSOR(S)_
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** RECENT LEGISLATIVE ACTIONS
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Below is a list of actions taken by legislatures on relevant bills over the course of the past week. Bills are listed in alphabetical order. For states with multiple bills, bills are listed in reverse chronological order by date of last action.
* Vermont S0254 ([link removed]) : This bill would require public employers to provide unions with employee contact information. It would provide for the automatic deduction of union dues from members' paychecks, and it would permit unions to meet with new employees to provide them with information regarding union membership.
* Democratic sponsorship.
* Sent to governor Oct. 6.
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