Michigan Law Requiring Pay from Teachers Ruled Unconstitutional

.

A law in Michigan that requires school employees to pay 3% of their salaries for retiree health care has been declared unconstitutional by Judge James Giddings on Friday. He said the actions taken by the Michigan law makers in this case were “arbitrary and unreasonable”. This ruling follows one in February that said another 3% provision for state employees was unconstitutional. Both of these cases are expected to ultimately appear before the Michigan Supreme Court.

Because of this ruling, the state is facing a $300 million hole in their budget. The teacher’s union initially filed the lawsuit because despite the fact that the teachers working and paying the 3% out of the paychecks for heath care, they were not guaranteed the same benefits when they retired. According to Geralyn Lasher, a spokeswoman for Governor Rick Snyder, the government wants to appeal this ruling of the case.

David Hecker, of the American Federation of Teachers Michigan said that the state shouldn’t reduce the funding given to retired teachers even if the law requiring current teachers to pay 3% of their paychecks is struck down. “Retiree health care needs to be provided, and the state needs to step up and provide it”, he said.


Latest News

Minimum Wage for Tipped Workers Raised in New York
Office Depot and Home Depot Reports Better Than Expected Earnings Results
Attorney General Eric Schneiderman investigating the Selection Process of Casino
Barack Obama Calls for Stricter Standards for Brokers Advising on Saving Plans
Chefs of SoDel Concepts Restaurants Turn Girl Scout Cookies into Innovative Dess
Valeant Pharmaceuticals International Inc. to Acquire Salix Pharmaceuticals Ltd
Investors will be All Ears to Janet Yellen as she Testifies before the US Senate
Proposed Merger of Sysco and US Foods faces Strong Opposition
Procter & Gamble to Discontinue About Hundred of Its Brands by Summer
An Entrepreneur Predicts: Apple will buy Tesla Motors in Eighteen Months
A Federal Judge in the U.S Finds American Express Guilty Of Antitrust Violations
First Phase of Repair of the Washington National Cathedral has Finished