Towns Must Provide Explanations When Hiring Less Qualified Workers

 

As reported by nj.com, municipalities hiring from a civil service list have to give a “legitimate” reason for skipping over a candidate in favor of one who placed lower in test ranking, the state Supreme Court ruled yesterday.

The 4-2 decision reverses a practice that labor experts said had given too much power to hiring authorities who in the past gave vague reasons for bypassing qualified candidates in favor of family members or those with political connections.

The court ruled in the case of Nicholas Foglio, who was skipped over for a firefighter’s position in Ocean City in 2007. In hiring three firefighters that year, the city picked a bartender and a lifeguard over Foglio, an eight-year volunteer fireman and emergency medical technician in several communities, despite his higher ranking on the civil service test.

The city initially cited the other candidates’ better educational background, but Foglio had the relevant firefighter educational experience. The city then said the other candidates performed better in their interviews, but city officials could not produce any notes or a list of standard questions they asked all the candidates. Finally, the city said the other candidates “best met the needs” of the fire department. The Civil Service Commission upheld the city’s finding, saying it was Foglio’s obligation to prove the city had improper motives, such as age or gender discrimination, in selecting others. An appeals court agreed.

However, the Supreme Court said a “boilerplate” reason is insufficient and the city was obligated to provide to the state Department of Personnel a statement of “legitimate” reasons why Foglio was not selected. “In the absence of such reasons, the appointment is presumably in violation of the principles of merit and fitness and it is the city that bears the burden of justifying its actions,” Justice Virginia Long wrote for the majority.

Dissenting Justices Jaynee LaVecchia and Helen Hoens said the ruling creates a “new rigidity” in hiring practices where the appointing authorities ought to have some discretion to appoint from the top three candidates.

Ocean City’s solicitor, Dorothy McCrosson, declined to comment on the case. She said many of those officials involved in the selection process in 2007 no longer work for the city. The city now has to decide whether to give Foglio a legitimate reason for why he was skipped or it has to give him a job on the fire department.

Candidate Properly Bypassed Under Rule of Three

 

On June 18, 2009, the Appellate Division decided In the Matter of Andre Ruiz, Firefighter (M2271E), City of Camden, Docket No.: A-2611-07T2. In the case, Andrte Ruiz appealed the Final Administrative Action of the Merit System Board (“Board”) issued on October 11, 2007, concluding that the City of Camden (“City”) properly bypassed Ruiz under the “Rule of Three.” Ruiz also appeals from the Board’s January 22, 2008 Final Administrative Action denying his petition for reconsideration.

On October 3, 2005, the Department of Personnel (“DOP”) issued Certification Number Ol052133 to the City respecting open-competitive lists M2013A and M2271E containing the names of 150 eligible candidates for the position of firefighter. Ruiz was on list M2271E. The City returned the certification in March 2006 proposing the removal of several names, including that of Ruiz, ranked thirty-sixth, on the ground that he failed to meet the City’s residency requirements. On April 3, 2006, the City appointed thirty-five eligible candidates to the position of firefighter while the propriety of the proposed removals was still pending before the DOP.

On January 18, 2007, the Board determined that the City had failed to establish that Ruiz and five other eligible candidates, including Ruiz’s brother who resided at the same address as Ruiz, did not reside in the City. As such, the Board ordered the City to either produce sufficient documentation to support removal of the six eligible candidates based on non-residency, appoint them, or produce adequate justification for bypassing them or removing them on other grounds within sixty (60) days. 

On March 14, 2007, the City responded to the Board’s January 18, 2007 decision by submitting additional documentation to the DOP seeking to establish that Ruiz and the five other eligible candidates did not meet the City’s residency requirements. Thereafter, on April 3, 2006, the City notified the DOP that it had used the Rule of Three to appoint thirty-five eligible candidates to the position of firefighter. Despite stating it employed the Rule of Three, the City represented that no eligible candidates had been bypassed and appointments had been made through eligible candidate No. 74. The City sought entry of an order that it had properly disposed of open-competitive lists M2013A and M2271E.

On March 20, 2007, the DOP issued a disposition-deficiency notice to the City, notifying it that the reasons it had submitted for removal of Ruiz and two other eligible candidates, including Ruiz’s brother, based upon non-residency were not acceptable. It permitted the City to bypass two of the three eligible candidates provided the City submitted a short, written positive statement explaining why other lower or equally ranked eligible candidates were appointed. However, it required that the City appoint one of the three eligible candidates.

 

In the meantime, open-competitive list M2271E was scheduled to expire on June 20, 2007, and the DOP Director of Selection Services requested that the expiration date be extended until new employment lists could be issued based on a new examination. The Board extended the expiration date and, pursuant to that extension, the City appointed Ruiz’s brother, the highest ranked of the three remaining candidates as a firefighter. 

Subsequently, on July 26, 2007, Ruiz filed a notice of appeal and petition for enforcement of the January 18, 2007, final agency action. He alleged that thirty-five eligible candidates had been appointed and that the City had failed to comply with the Board’s requirements for either adequate documentation of nonresidency or justification for removal or bypass. He further alleged that the City had appointed thirty-five firefighters, but had failed to appoint him.

On October 11, 2007, the Board issued its Final Administrative Action on Ruiz’s notice of appeal and petition for enforcement. The Board concluded that N.J.A.C. 4A:2-1.4(c) and N.J.A.C. 4A:4-4.8(b)(4) placed the burden of proof on Ruiz to show by a preponderance of the evidence that the City’s decision to bypass him was improper. The Board found that Ruiz had not even alleged “a specific improper reason underlying the appointing authority’s bypass of his name” and found that the City had fully complied with the Board’s January 18, 2007 decision. Accordingly, the Board found that the current disposition of the certification, including the bypass of Ruiz’s name, was in compliance with its prior decision and the Rule of Three. Thereafter, Ruiz filed a petition for reconsideration, which the Board ultimately found to be without merit. This appeal ensued.

The Appellate Division affirmed the Board’s decision in determining that Ruiz failed to meet his burden of demonstrating that the Board’s actions were arbitrary, capricious, or unreasonable. First, the Court found that all of the issues raised by Ruiz on appeal were not properly before the Court. Specifically, Ruiz’s time to appeal the January 18, 2007 Final Administrative Action expired ling before his July 26, 2007 notice of appeal and petition for enforcement. Second, the Court explained that any expectation that Ruiz had of mandatory appointment was defeated by the possibility of being bypassed that the Board specifically permitted on January 18, 2007, a final agency action from which Ruiz did not appeal. Further, as the Board observed, there is no evidence that Ruiz was not considered by the City when it selected the most qualified of the three remaining eligible candidates.

Promotional Guarantee Can Violate Rule of Three

 In the Matter of Martinez, A-0090-07T2, the Appellate Division held a civil service appointing authority violates the Rule of Three, N.J.S.A. 11A:4-8, in guaranteeing a promotional candidate that he or she will receive the appointment if he or she attains the highest score on the examination. 

 

After taking the civil service examination for promotion to deputy fire chief on March 30, 2006, appellant Kenneth Martinez, a fire captain in Passaic, was ranked first among the eligible nonveterans. A promotional list listing Martinez first was promulgated by the State Department of Personnel on June 22, 2006. However, the City was separately arranging for another candidate, Captain Christopher Szczygiel, to receive the promotion. The City had previously bypassed Szczygiel and appointed lower-ranked individuals to the rank of captain, causing Szczygiel to file an administrative appeal before the Merit System Board, as well as a civil action in the Law Division. 

 

A settlement of Szczygiel’s litigation was attained and on January 31, 2007, the Board issued a final decision approving the proposed settlement terms that the parties had disclosed it. Although it was not disclosed to the Board at the time, the settlement terms would allow Szczygiel to compete for the deputy chief position. In fact, the settlement guaranteed Szczygiel appointment to deputy chief, so long as his exam grade proved to be higher than that of anyone else who sat for the exam. 

 

Following the Board’s approval of the settlement, the Department of Personnel graded Szczygiel’s exam and determined that he had the highest score. It then generated a new promotional list for deputy chief ranking Szczygiel first and Martinez second. Thereafter, the City appointed Szczygiel deputy chief on April 1, 2007. 

 

Martinez filed an administrative appeal, contending that the Board’s ratification of the settlement, and the City’s actions in guaranteeing Szczygiel the appointment, violated the longstanding “Rule of Three” principle of New Jersey Civil Service Law, as well as the merit and fitness clause of the state constitution. On July 27, 2007, the Board rejected Martinez’s challenge and this appeal followed.

 

On appeal, Judge Sabatino opined that the guarantee in the Szczygiel was troublesome because it provided that Szczygiel would receive the promotion to deputy chief so long as he scored first on the promotional exam. The Board was not informed of the guarantee prior to its January 31, 2007 approval, final determination of Martinez’s appeal, nor was the guarantee disclosed to Martinez, who had every right to expect that the normal selection processes under the Rule of Three would be observed.

 

In addition, the Court stated it is doubtful that the Legislature wished to allow municipalities to dispense with the Rule of Three and reach agreements with applicants guaranteeing them a position if they scored high enough on an exam. Such individualized guarantees run contrary to the objectives of the civil service system and also deviate from the Rule of Three’s aim to include “other merit criteria” in the selection process.

 

This decision reinforces the importance for an appointing authority to follow the requisite procedures in granting promotions. The Rule of Three, much like other required procedures, cannot be usurped in favor of settlement agreements which undermine the goals of the Civil Service System, namely a fair and objective selection process based on merit and other criteria.