New York Law Review

McQueeney v. New York City Health & Hosps. Corp., 67 N.Y.2d 721 (1986): Managerial Employees and Civil Service Law Protections

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McQueeney v. New York City Health & Hosps. Corp., 67 N.Y.2d 721 (1986)

Managerial employees of the New York City Health and Hospitals Corporation (NYCHHC) are not entitled to the protections of Civil Service Law § 75 because the NYCHHC Act implicitly excludes them from the civil service system to promote managerial flexibility.

Summary

McQueeney, formerly the director of security for a NYCHHC facility, was terminated for misconduct. He argued he was entitled to notice and a hearing under Civil Service Law § 75 as an honorably discharged veteran. The NYCHHC contended that managerial employees are not part of the classified civil service and, therefore, not covered by § 75. The Court of Appeals held that the legislative intent behind the NYCHHC Act was to exclude managerial employees from civil service protections to allow for greater managerial flexibility, thus Civil Service Law § 75 did not apply to McQueeney.

Facts

McQueeney was the director of security for the Morrisania Neighborhood Family Care Center, operated by the NYCHHC. He was a managerial employee. The NYCHHC terminated him for misconduct. McQueeney was an honorably discharged veteran.

Procedural History

The NYCHHC terminated McQueeney after reviewing written charges and evidence under its internal termination review procedure for managerial employees. McQueeney then brought a claim, arguing that, as a veteran, he was also entitled to the protections of Civil Service Law § 75, including notice and a hearing. The lower courts sided with McQueeney. This appeal followed to the New York Court of Appeals.

Issue(s)

Whether Civil Service Law § 75, which guarantees certain rights to honorably discharged veterans, applies to managerial employees of the New York City Health and Hospitals Corporation.

Holding

No, because the legislative intent behind the NYCHHC Act implicitly excludes managerial employees from civil service protections to promote managerial flexibility.

Court’s Reasoning

The court reasoned that while the Legislature did not expressly exempt the NYCHHC from Civil Service Law, the intent to exclude managerial employees is implicit in Unconsolidated Laws §§ 7385 (12) and 7390 (1), which grant the NYCHHC authority to make personnel rules for employees *other* than managerial employees, so long as such rules are consistent with Civil Service Law. The statute creating the NYCHHC allowed it to employ executive and management personnel (Group 11) *and* “such other employees” as necessary (Group 12). Regarding the latter group, the corporation was specifically required to promulgate rules and regulations relating to appointments, promotions, transfers, demotions and removal “consistent with civil service law”. These requirements, however, did *not* apply to managerial employees. The court emphasized that the Legislature was aware of the necessity for this distinction between Group 11 and Group 12 employees to promote “managerial flexibility” (Uncons Laws § 7382). The court further referenced reports contained in the bill jacket which showed that this flexibility was deemed desirable for the new authority because of difficulties that city hospitals were having in attracting qualified middle management personnel due to budgetary and civil service restrictions. As the court stated, McQueeney’s attempt to interpret the broad scope of § 75’s protection for honorably discharged veterans to extend to managerial employees of the respondent corporation is defeated by the act’s override provision (Uncons Laws § 7405) which renders inapplicable any inconsistent law.

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