Justia U.S. 7th Circuit Court of Appeals Opinion Summaries

The Board of Education laid off about 1,300 teachers in 2010. When additional funds became available, the Board recalled 715 teachers, but did not have any policy on recalls. The union obtained an injunction rescinding the discharges and requiring the board to work with the union to establish procedures by which those teachers can attempt to show that they are qualified for new vacancies as they arise. The Seventh Circuit ordered that the injunction be modified to delete the requirement of cooperation with the union, which is not required by the Illinois School Code provisions concerning recall, 105 ILCS 5/34-18. Illinois law gives tenured teachers a property interest in continued employment and, while pre-termination due process is not required for good-faith economic layoffs, there is a legitimate expectation that laid-off teachers will be considered for vacancies for a reasonable amount of time. To comply with due process requirements, the Board must develop procedures by which teachers can prove their qualifications for those vacancies.

Three white police officers, in good standing, resigned and later sought to be rehired. They were required to reenter the force as entry-level officers with respect to compensation and seniority. An African-American officer who had resigned was subsequently rehired. The city enacted an ordinance, in the interest of diversity, granting him credit for past service. The union filed suit. A state court determined that the union lacked standing. A state suit later filed by the individuals was dismissed as untimely. The officers filed in federal court, which first applied the "paycheck rule," under which each discriminatory paycheck is a separate act that resets the limitations period, but entered judgment for the city when that rule was rejected by the Supreme Court. In 2009, while appeal was pending, Congress enacted the Ledbetter Fair Pay Act, amending Title VII (42 U.S.C. Sec. 2000e-5(e)(3)(A)), reinstating the paycheck rule. The Act is expressly retroactive. The Seventh Circuit concluded that Title VII and Equal Protection claims, based on actions after the state court's decision, were not barred. The compensation system need not be intrinsically discriminatory under Title VII. The court concluded that the paycheck rule also applies to the Equal Protection claims, the limitations period for which began to run when the officers requested equal treatment. The state court decision did not have preclusive effect because it dealt only with the limitations period and did not address discrimination.