Johnson v. Natural Resources & Community Development
Johnson v. Natural Resources & Community Development
Opinion of the Court
This case concerns the discharge of a state employee who had an exempt policymaking position under the provisions of G.S. 126-5(c)(3) and (d)(5). Since administrative agencies may validly do only those things the Legislature authorizes them to do, State ex rel. Commissioner of Insurance v. North Carolina Rate Bureau, 300 N.C. 381, 269 S.E.2d 547, reh’g denied, 301 N.C. 107, 273 S.E.2d 300 (1980), the decisive question presented is whether the administrative course that was followed in processing petitioner’s case was authorized by statute.
The facts pertinent to this question follow: Before being discharged on 10 September 1986, petitioner had been employed by
Mr. Johnson occupied a position exempted from certain portions of the State Personnel Act and certain policies of this Commission. Persons who occupy positions exempted as making policy under G.S. 126-5(c)(3) are not subject to Article 8 of Chapter 126, neither are they subject to this Commission’s policies on discipline and dismissal. For those reasons, this Commission concludes that it has no jurisdiction over this matter and orders that Petitioner’s appeal be dismissed for lack of jurisdiction.
Petitioner appealed this decision to the Superior Court of Wake County, which ruled that the conclusion of the State Personnel Commission was erroneous, all conclusions of the Administrative Law Judge were correct, the Personnel Commission did have jurisdic
That the case was properly started before the Office of Administrative Hearings is clear and not disputed. The dispute concerns the review of the Recommended Decision of the Administrative Law Judge by the State Personnel Commission. As the appellant maintains, and the State Personnel Commission ruled, the Legislature has not authorized the Commission to review cases involving the discharge of an exempt policymaking employee and thus the Commission was without jurisdiction.
Under the State Personnel Act, Chapter 126 of the General Statutes, there are two specific classes of employees — exempt and nonexempt; the two classes have different employment and dismissal rights and their cases are processed differently. The exempt employees are the relatively few who hold policymaking positions subject to political appointment and are generally exempt from the protections and safeguards of the Act; the nonexempt employees comprise the vast rank and file and are fully protected by the Chapter. As to the dismissal of employees, Article 8 of Chapter 126 of the General Statutes by G.S. 126-35, et seq., provides that nonexempt permanent employees subject to the Act can be dismissed only for “just cause” after written specifications, an opportunity to appeal to the department head, and other formalities have been complied with. On the other hand G.S. 126-5, which exempts policymaking positions from the protection of the Act except for certain purposes irrelevant to this case, by its subsection (5)(e) authorizes department heads to transfer, demote, or separate exempt employees without restriction, subject only to the employee’s rights, if he meets the accumulated service requirements of the statute and is removed from the exempt position for “reasons other than just cause.” G.S. 126-5(h) provides that in case of dispute as to whether an employee is subject to the provisions of the Chapter — and such a dispute exists here — “the dispute shall be resolved as provided in Article 3 of Chapter 150B.” That Article in pertinent part provides as follows: G.S. 150B-23(a) provides that a contested case is commenced by filing a petition with the Office of Administrative Hearings, which assigns a judge to hear the case; G.S. 150B-34(a) directs the Administrative Law Judge assigned to the case to make a recommended decision or enter an order containing findings of fact and conclusions of law; G.S. 150B-36
In arriving at this decision it was not necessary to resort to the nice refinements of statutory interpretation that the parties argue in the briefs. For the statutes referred to make plain that for the purposes of dismissal and discipline nonexempt permanent employees are fully protected by the Act and exempt employees generally are not; and that the administrative review route for cases involving the dismissal of exempt employees is through the employer agency, rather than the State Personnel Commission. Thus, we return the matter to the Office of Administrative Hearings with the directive that its recommended decision be forwarded to the Natural Resources and Community Development Department for a final administrative determination as to whether the petitioner, as an exempt employee, was properly dismissed for just cause, G.S. 126-5(e)(2); and if not, whether he is entitled to the reassignment rights that the Administrative Law Judge recommended.
Reversed and remanded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.