DNR Settles Class Action Lawsuit

The state must pay $3 million to members of the class for retroactive wages dating back to July 1, 1996. The settlement also calls for a $400,000 aggregate salary adjustment for members of the class starting April 9.

Source: Inside INdiana Business

Press Release

The Indiana Department of Natural Resources has settled the long-term class action lawsuit initiated by employees in 1998 in connection with the application of Public Law 70.

"I am very pleased that we were able to reach a settlement with the current and former DNR employees that were members of the class," said DNR Director Kyle Hupfer. "This litigation had gone on for far too long and bringing it to a fair and reasonable conclusion allows the DNR to move forward with total focus on fulfilling its mission."

Public Law 70 went into effect on July 1, 1996. It called for a survey of state government classification systems and salary schedules for professional employees in the natural resource professions from 9 states. Based upon that survey, the State Personnel Department was to prepare a classification system and salary schedule for professional employees of the Indiana DNR. Public Law 70 expired by its own terms on July 1, 2001.

The original class action lawsuit was filed June 26, 1998 and the class was certified on November 8, 1999. The state has denied and continues to deny any wrongdoing with respect to the application of Public Law 70.

On November 5, 2003, the trial court granted the State's Motion for Summary Judgment and dismissed the Plaintiffs' Complaint in its entirety. Plaintiffs filed their Notice of Appeal and on December 17, 2004, the Indiana Court of Appeals affirmed in part, reversed in part, and remanded the case to the trial court. The State filed a Petition for Transfer to the Indiana Supreme Court, which was stayed pending class action settlement approval. On February 2, 2006, the trial court entered a Final Judgment and Order Approving Settlement Agreement and Dismissing the Class Action with Prejudice. The Court determined, after hearing, that the Settlement was fair, reasonable and adequate. The settlement was reached after years of extensive discovery, as well as significant motion practice and appeal.

Terms of the settlement provide for a $3,000,000 payment to the members of the class for retroactive wages for the period of July 1, 1996 through June 30, 2005. On a going forward basis, the settlement calls for a $400,000 aggregate salary adjustment for members of the class. Both dollar amounts include applicable attorney fees and applicable employee withholdings. Allocation of the settlement amounts among the members of the class was determined by the class, counsel for the class and the expert retained by the class. The going forward adjustment takes effect on April 9, 2006, and will show up in class members' paychecks beginning with the one covering that date.

"This litigation had been hanging over the heads of class members/DNR employees and the state," said Hupfer. "This settlement allows the DNR to have a level of certainty with respect to fiscal management and allows the involved employees to focus on their work without the continued distraction of a lawsuit."

Source: Indiana Department of Natural Resources