Nebraska Public Employees Local 251, American Federation of State, County and Mun. Employees v. City of Omaha
| Decision Date | 03 March 1995 |
| Docket Number | No. S-93-691,S-93-691 |
| Citation | 528 N.W.2d 297,247 Neb. 468 |
| Parties | NEBRASKA PUBLIC EMPLOYEES LOCAL 251, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, et al., Appellants, v. CITY OF OMAHA, a Municipal Corporation, Appellee. |
| Court | Nebraska Supreme Court |
Syllabus by the Court
1. Declaratory Judgments: Appeal and Error. In an appeal from a declaratory judgment, the appellate court, regarding questions of law, has an obligation to reach its conclusion independent from the conclusion reached by the trial court.
2. Declaratory Judgments. Whether a declaratory judgment action is treated as an action at law or one in equity is to be determined by the nature of the dispute.
3. Contracts. When a dispute sounds in contract, the action is to be treated as one at law.
4. Commission of Industrial Relations: Wages. The Commission of Industrial Relations has statutory authority to establish wage-step progression schedules.
Thomas F. Dowd, of Dowd & Dowd, for appellants.
Kent N. Whinnery, Deputy Omaha City Atty., for appellee.
Members of a collective bargaining unit which represents employees of the City of Omaha (City) brought this action for an accounting of alleged underpayment of wages. The action was brought after the Commission of Industrial Relations (Commission) issued a decision which resulted in the implementation of a pay plan that reduced the wages of some of the employees.
In an appeal from a declaratory judgment, the appellate court, regarding questions of law, has an obligation to reach its conclusion independent from the conclusion reached by the trial court. National Am. Ins. Co. v. Continental Western Ins. Co., 243 Neb. 766, 502 N.W.2d 817 (1993).
The plaintiffs, Nebraska Public Employees Local 251, American Federation of State, County and Municipal Employees; Janis R. Thomas; and 99 other individuals, hereinafter referred to collectively as the employees, filed a petition in equity requesting an accounting individually and on behalf of all similarly situated former and current employees of the City who allegedly sustained an underpayment of wages as a result of the City's alleged improper placement of the employees on a pay plan.
During the 1970's, the City's six-step pay plan was revised to three steps. Under the three-step pay plan, a new employee could reach the top step and the maximum wage in a period of 1 year. The first step was entry level, the second step was reached after a 6-month probationary period, and the top step was reached after 1 year of employment. In 1988, the City and the employees attempted to negotiate a new collective bargaining agreement for the fiscal year beginning December 26, 1988, but when the negotiations failed, the City filed a petition with the Commission.
On February 6, 1990, the Commission issued its findings and order, which directed that the employees be placed on a six-step pay plan that required 5 years of employment to reach the top step. The Commission's order established the minimum and maximum wage of each job classification. The result was that some of the employees received decreases in wages, while others received increases.
On or about May 13, 1990, the City placed the employees on the six-step, 5-year pay plan according to each employee's years of employment as of December 26, 1988. This placement was retroactive to January 1, 1990. The employees did not object to the application of the new pay plan for employees hired on or after December 26, 1988, but The employees alleged that the City's failure to give them credit for "their relative and proportionate position between the minimum and maximum on the previous pay plan they occupied prior thereto" had resulted in underpayment of wages since January 1, 1990. The employees filed claims for underpayment of wages with the City on March 21, 1991. The claims were denied by the city council on October 8. The employees then filed their petition in the district court, requesting that the City be required to make an accounting for underpayment of wages, to pay all compensation due, and to advance the employees to the appropriate step on the new pay plan. The district court approved the City's actions, finding that the implementation of the six-step, 5-year pay plan was in compliance with the Commission's order of February 6, 1990, and the petition was dismissed. The employees appeal.
they objected to the implementation of the pay plan as it affected the status of employees who were hired prior to December 26, 1988.
The employees claim the district court erred in ruling that the City's implementation of the six-step, 5-year pay plan was in compliance with the order of the Commission.
In its order of February 6, 1990, the Commission made no findings concerning the method to be used by the City to place the employees on the new pay plan. The record does not indicate that any party appealed from the order of the Commission or requested clarification regarding implementation of the pay plan. It was not until after the City implemented the order by placing the employees on the new pay plan that the employees sought to challenge the City's interpretation of the Commission's order.
The employees requested an accounting based upon what they claimed was an underpayment of wages resulting from the City's placement of the employees on the six-step, 5-year pay plan without...
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