Court rules Michigan legislature illegally quashed pay raise

Aug 26, 2011

The Michigan Court of Appeals says the Legislature violated the state constitution by illegally taking money from state employee paychecks to cover retirement health care costs.

State employees are in line to get back $60 million dollars that was withheld from their paychecks if this decision stands.

The court of appeals says then-Governor Jennifer Granholm and the Legislature could not take three percent of state employee salaries for retirement costs after lawmakers failed to block three percent pay raises.

The pay raises were approved by the independent state Civil Service Commission, and could only be reversed by super-majorities in the House and Senate.

The appeals court said that was just another way to take away the pay raise, and violated the process set up by the state constitution.

Governor Rick Snyder says the money is needed to help cover a shortfall in the state employee retirement fund. He could ask the state attorney general to appeal the decision to the Michigan Supreme Court.

*Correction - an earlier version of this story incorrectly stated that the current Michigan legislature and Governor Snyder "adopted the plan earlier this year that requires state employees contribute 3 percent of their paychecks toward their retirement health care costs."

The plan was adopted under a previous legislature and then-Governor Granholm.

The headline has been changed as well. (previous headline "Court rules Michigan legislature and Gov. illegally quashed pay raise").

We regret the error.