Wednesday, November 9, 2011

SB 5 Repealed: Now What??

*By George S. Crisci

As all of you now know, Ohio’s voters repealed Senate Bill 5 by more than 60% of the vote. This outcome is consistent with the polling data that had been conducted since last August, so the outcome was not surprising.

This outcome raises serious questions about what will happen next. There is a two-part answer.

First, Senate Bill 5 never went into effect. The successful petition drive that put the repeal referendum on the ballot delayed its effective date, if at all, until after referendum. Ohio already has a collective bargaining law and related public sector employment laws (e.g., civil service, teacher tenure, etc.); those laws remained in effective throughout the referendum campaign; and they remain in effect today. Our best suggestion is to continue living with the terms of the existing laws that had developed over the years and before Senate Bill 5 ever surfaced.

Second, there are some aspects of Senate Bill 5 that also were included in the biennial appropriations bill. Those changes survive the referendum, because a referendum cannot repeal an appropriations measure. Those changes address: (1) licensure examinations, evaluations, performance-based compensation and layoffs for public school teachers; (2) laying off or transferring public school transportation employees and replacing them with independent contractors; (3) limiting sick leave benefits for less than regular full-time public school employees; (4)restructuring low-performing public schools; (5) health care plans requirements for certain political subdivisions; and (6) civil service appointment and promotion selection procedures. Public sector employers who are subject to these provisions in the biennial appropriations bill should continue their efforts to comply. If you have any questions concerning the changes that survived the repeal of Senate Bill 5 or whether you are subject to these requirements, please contact us.

Finally, commentators and political analysts have started discussions about how Governor Kasich and the Republican leadership will respond to the repeal of Senate Bill 5. Any such discussions are grounded in speculation and uncertainty. It is too soon to tell what, if anything, will happen and when it will occur. We will continue to monitor the situation and alert you to any significant and substantive developments.

*George S. Crisci
, an OSBA Certified Specialist in Labor and Employment Law, practices in all areas of labor and employment law. For more information about legislation affecting the public sector, or any other labor or employment issue, please contact George at 216.696.4441 or gsc@zrlaw.com.