7th Circuit determines collective bargaining agreement confers property interest

The U.S. 7th Circuit Court of Appeals (whose rulings apply to all Wisconsin employers) recently applied Illinois law to determine whether a collective bargaining agreement (CBA) conferred a property interest protected by the Fourteenth Amendment’s Due Process Clause. The court concluded that, when considered as a whole, the CBA did confer such a property interest. The case serves as an important reminder to employers that when negotiating or drafting a CBA, it’s critical to understand how the agreement will be read and considered as a whole to ensure it doesn’t confer more rights than intended.

Facts

Joshua Cheli worked for the Taylorsville Community School District as a computer systems administrative assistant. On September 28, 2018, his superiors (the superintendent and the computer services director) called him into a meeting during which he was terminated because a female student alleged he had sexually harassed her. He denied the allegations, but his superiors said a conclusion had already been reached on the matter.

On October 9, the school board entered a resolution memorializing Cheli’s termination. He didn’t receive notice of the board meeting, nor did he receive written notice of the charges or evidence against him.

After passing the resolution, the school board sent Cheli a notice of termination stating “the basis or grounds for discharge include incompetence.” The notice said he could ask for the written report the superintendent submitted about the reasons for his discharge. The district failed, however, to provide a copy  upon his request.