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“EXEMPT EMPLOYEES” UNDER THE CIVIL SERVICE LAW ARE TERMINABLE AT WILL; A COLLECTIVE BARGAINING AGREEMENT WHICH PURPORTS TO MAKE AN EXEMPT EMPLOYEE TERMINABLE FOR CAUSE IS UNENFORCEABLE (CT APP).

The Court of Appeals, reversing the appellate division, in a full-fledged opinion by Judge Garcia, determined a so-called “exempt employee (here the secretary to the town planning board) whose qualifications cannot be tested by a Civil Service examination is terminable at will. The collective bargaining agreement (CBA) defined the bargaining unit to include the secretary and permitted the town to terminate only for “just cause.” When the secretary was fired the union filed a grievance and sought arbitration. The Court of Appeals held the secretary. as an “exempt employee”  was terminable at will and arbitration was therefore not available:

Certain civil service positions are classified as “exempt” when the position is of a confidential nature and requires personal qualities that cannot practicably be tested by an examination. Exempt class employees are therefore terminable at will. In this case, the parties entered into a collective bargaining agreement that purports to provide for-cause termination protection to certain exempt class employees. We hold the agreement unenforceable to the extent it grants such protections, and therefore this dispute over an exempt class employee’s termination is not arbitrable. Matter of Teamsters Local 445 v Town of Monroe, 2023 NY Slip Op 02754, CtApp 5-23-23

Practice Point: A so-called “exempt employee” under the Civil Service Law is one whose skills cannot be tested by a Civil Service exam. Exempt employees are terminable at will. A collective bargaining agreement which purports to make exempt employees terminable for cause is unenforceable.

 

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