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Facts

  • The American Federation of State, County and Municipal Employees Council 18 (the Union) filed a lawsuit against the New Mexico State Personnel Board and its Director, Sandra Perez (collectively, the Board), challenging a regulation adopted by the Board. This regulation defined "shift work schedule" as used in a collective bargaining agreement between the Union and the State of New Mexico. The Union argued that this regulation violated the Contract Clauses of the United States and New Mexico Constitutions by impairing the agreement. The dispute centered on a sick leave incentive clause in the agreement, which the State had interpreted in a manner contrary to the Union's interpretation, leading to the Board's adoption of the new regulation after an arbitrator ruled against the State's interpretation (paras 2-4).

Procedural History

  • District Court of Santa Fe County, Barbara J. Vigil, District Judge: The court dismissed the Union's action seeking declaratory and injunctive relief against the Board, holding that the regulation was prospective in its application and did not impair the collective bargaining agreement (para 1).

Parties' Submissions

  • Plaintiff-Appellant (the Union): Argued that the Board's regulation defining "shift work schedule" unconstitutionally impaired the collective bargaining agreement under the Contract Clauses of the United States and New Mexico Constitutions (para 4).
  • Defendants-Appellees (the Board): Moved to dismiss the complaint on the ground that it failed to state a claim, arguing that the regulation applied prospectively and did not substantially impair the agreement (para 4).

Legal Issues

  • Whether the regulation defining "shift work schedule" unconstitutionally impaired the collective bargaining agreement under the Contract Clauses of the United States and New Mexico Constitutions (para 4).

Disposition

  • The Court of Appeals of New Mexico reversed the district court's ruling, holding that the complaint stated a claim on which relief could be granted (para 9).

Reasons

  • RODERICK T. KENNEDY, Chief Judge, with JONATHAN B. SUTIN, Judge, and LINDA M. VANZI, Judge concurring, found that the Union's complaint sufficiently alleged that the regulation substantially impaired an existing contract right, rendering the regulation unconstitutionally retroactive. The court emphasized that a regulation only applies prospectively unless shown to affect an existing contract, in which case it becomes retroactive and triggers the Contract Clauses. The allegations in the Union's complaint were deemed more than sufficient to state a claim of substantial impairment of contract, highlighting that some state agencies had previously given the incentive to employees not requiring continuous shifts and that the State had withdrawn this benefit based on its new interpretation, which was contrary to an arbitrator's decision. The court concluded that the Board's adoption of the regulation was an attempt to circumvent the arbitrator's decision and the State's obligations under the agreement, thereby impairing the agreement in violation of the Contract Clauses (paras 6-8).
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