ÿWPC1 [Añ/8/œá©CDñ<à]̦ƒ#£3ÊUŽìahM÷ùÔ DŸådÒ×ú\ ñ!)S»éX®.^®Žf« ´åWj‚ôð¿óè_½¶"&ÀcìD½„ÚKQ©‚ú%ÿ…È–ËÒ×T†ée!æø7ÛgN–4?üp¡.Ú{Ïl¦a#í›n:g'%2–šN½ðÕ*0ô3Ì‚vûðæ¿)ÆeW«ª°Tº¬*Î Ò³U—èa TIWÐö¥Ü¢¿Á7C÷uæRÇw*M¯Øœ¼•DòïHRÛà“€Ù)¶£ 6!h¯á–àÓµ~F×ÀªIF’ßwµ[ùßOpiü¶òáŒ;¸Â#ø%sÄ``«D{À5º@MÃB³fBV±D… Ez*$Hb!´A=G ÷ueË„¼¦ÚÂ'Cμ6Nè±ÞuäW£†Â¾g>L¯ ”4‰òOΫÂ`qÝfpn‡ǫ̀.Jøh®uQœ‹zºx S!¢ƒ¹ô|§qT5+õ#§¹@‡¤ªðER#N+%[r¾JàÕÈùYÞúí‡O–›DÊ¢@ íq¿îß™×:|¦ù‡YúG…ùZ`,¬v P ˆp)檫[b#Á\ % ^ # 0ˆ/ U N· w 4 z Ò— i x mz ‘ Æ™ Æ_ Æ% Æë í±Nž 0D  EäU@æææææææææææææææææææææææb&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 0ë.... B 0¤6 D3Ú D-  0K:: AS…ÆØ 0¤ž 0DB A«†˜HP LaserJet 4050 Series PCL 5eÈÈ,,,,ÈÈ0»Dœ)L (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularö~ì( œ€Ÿ ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5 ãÝ ƒRò¥$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôüò»»ÔÝ  ÝÔ_ÔÔ€ôüòòôüÔ€€We€find€it€useful€to€point€out€that€had€Commissioner€Ô_ÔHattawayÔ_Ôððs€decision€been€a€part€of€a€reorganization€ofÐ ° ÐDCS€rather€than€a€part€of€the€initial€organization€and€transfer€of€employees,€such€decision€would€not€have€been€inÐ tÄ Ðviolation€of€the€statute.€(#Ã$òòÚ  Ú0Ú  Úóó(ÆúI Z‹(Times New Roman - ù-(|G2ò¥$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€H-»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôüò»»Ô d(|3Çw$££Ý ƒ£ª!ÝÑ€.ÑÑ8€H-»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Çw$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€H-»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€H-»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼H-»»»ÔÑ8€XXdì»»d8ÑÑ  ÑÔ€¼H-»»¼H-Ôà@ü ü ìàÔ‡îžî»¼H-ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼H-»îîž+#ԈРÖ& ÐÓ  ÓJuly€2000€SessionÐ üL ÐÔ‡XX»¼H-ÔÌò òÔ#†¼H-»XX #ÔCHARLES€LIPSCOMB,€òòet€al.óó€v.€ELEANOR€YOAKUM,Ð úJ ÐCOMMISSIONER,€òòet€alóó.Ô‡XX»¼H-Ôó óÐ  ^ ÐÌà@@½½ìàò ò€Appeal€from€the€Chancery€Court€for€Davidson€CountyÐ  ^ Ðà@@øøìàNo.€98„3506„I€€€€€€Irvin€H.€Kilcrease,€Jr.,€ChancellorÐ ú J ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<½` AßÐ ¾  ÐÌà@@TTìàNo.€M1999„01665„Ô_ÔCOAÔ_Ô„R3„CV€„€August€16,€Ô_Ô2000Ô_ÔÐ ¹  ÐÌßA€V) °°` dE<` AßÐ ‘á  Ðó óÌÓ  ÓThis€appeal€arises€from€the€trial€courtððs€finding€that€the€Commissioner€of€the€Department€ofÐ ŒÜ ÐChildrenððs€Services€was€in€direct€violation€of€Tenn.€Code€Ann.€ðð€37„5„105(1)€when€he€eliminatedÐ xÈ Ðthe€appelleesðð€payment€differential€after€their€transfer€into€the€department.€€We€affirm€the€judgmentÐ d´ Ðof€the€trial€court.€€Ð P  ÐÓýÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Ð (x ÐAffirmedó óÐ d ÐÌòòÓ  ÓÔ#†¼H-»àX³#ÔÔ‡XX.¼H-ÔBen€H.€Cantrell,€P.J.,€M.S.óó,€delivered€the€opinion€of€the€court,€in€which€òòWilliam€B.€Cainóó€andÐ ì< ÐòòPatricia€J.€Cottrell,€JJ.óó,€joined.Ð Ø( ÐÌPaul€G.€Summers,€Attorney€General€and€Reporter;€William€J.€Marett,€Jr.,€Assistant€AttorneyÐ ° ÐGeneral,€for€the€appellants,€Eleanor€Yoakum,€as€Commissioner€of€the€Department€of€Personnel€andÐ œì ÐGeorge€Hattaway,€as€Commissioner€of€the€Department€of€Childrenððs€Services.Ð ˆØ ÐÌLarry€D.€Woods,€Nashville,€Tennessee,€for€the€appellees,€Charles€Lipscomb,€John€Maiuri,€ArleneÐ `!°  ÐMartin„Norman,€Brenda€Neal,€Nancy€Work,€Betty€Barrett,€Susan€Hall„Huffman,€Patricia€Harwood,Ð L"œ! Ðand€Leslie€Nims.€€Ô#†¼H-»XX`#ÔÔ‡XX»¼H-ÔÐ 8#ˆ" ÐÓ1ÓÌò òOPINIONó óÔ#†¼H-»XX— #ÔÔ‡XX»¼H-ÔÐ %` $ ÐÌòòóóÔ#†¼H-»XX #ÔÓ  ÓÔ€XX»¼H-Ôà@¬¬)ìàò òI.ó óˆÐ è&8"& ÐÌà  àThe€appellees€were€employees€of€the€Department€of€Human€Services€(ð ðDHSðð)€who,€in€JulyÐ À($( Ðof€1996,€were€transferred€to€the€newly€formed€Department€of€Childrenððs€Services€(ð ðDCSðð).€€AfterÐ ¬)ü$) ÐGeorge€Hattaway,€the€Commissioner€of€DCS,€eliminated€the€pay€differential€that€the€appellees€hadÐ ˜*è%* Ðbeen€receiving,€the€appellees€requested€a€declaratory€order€pursuant€to€Tenn.€Code€Ann.€ðð€4„5„223Ð „+Ô&+ Ðfrom€Eleanor€Yoakum,€the€Commissioner€of€the€Department€of€Personnel.€€The€appellees€allegedÐ p,À', Ðthat€Commissioner€Hattaway€had€violated€Tenn.€Code€Ann.€ðð€37„5„105(1)€in€eliminating€the€payÐ \-¬(-ý Ðdifferential.€€After€a€hearing,€Commissioner€Yoakumððs€designee€found€that€the€discontinuation€ofÐ ° Ðthe€4.5%€pay€differential€was€consistent€with€the€statute.€€On€appeal€to€the€Chancery€Court€forÐ œì ÐDavidson€County,€the€Chancellor€reversed€the€agencyððs€order€and€found€that€the€elimination€of€theÐ ˆØ Ðpay€differential€was€in€direct€violation€of€the€statute.€€The€Chancellor€then€ordered€that€the€payÐ tÄ Ðdifferential€be€reinstated€retroactively€from€the€date€of€its€elimination.€€The€appellants€now€appeal.Ð `° ÐÌà@……)ìàò òII.ó óˆÐ 8 ˆ ÐÌà  àWhile€employed€by€DHS,€the€appellees€worked€in€the€Childrenððs€Protective€Services€(CPS)Ð  ` Ðdivision.€€They€were€also€involved€in€a€CPS€on„call€program.€€The€appellees€testified€that€theÐ ü L  Ðprogram€was€very€demanding,€requiring€them€to€wear€a€pager€and€to€be€available€twenty„four€hoursÐ è 8  Ða€day.€€While€on€call,€they€were€also€required€to€be€able€to€reach€any€hospital€or€police€department€Ð Ô$  Ðwithin€twenty€minutes.€€The€appellees€had€to€be€ready€to€respond€to€any€call€at€any€time.€€These€on„Ð À  Ðcall€shifts€lasted€for€one€week€and€the€appellees€were€generally€on€an€every€third€week€rotationÐ ¬ü  Ðschedule.€€In€return€for€participating€in€this€on„call€program,€the€appellees€received€a€paymentÐ ˜è  Ðdifferential€of€4.5%€of€their€base€salary€for€any€period€when€they€were€on€call.€€Ð „Ô  Ѐ€Ð pÀ Ðà  àWhen€DCS€was€created€in€May€of€1996,€the€legislature€enacted€several€statutes€regarding€theÐ \¬ Ðcreation€of€the€new€department€of€the€state€and€the€powers€and€duties€of€the€departmentððsÐ H˜ ÐCommissioner.€€òòSeeóó€Tenn.€Code€Ann.€ðð€37„5„101€et.€seq.€€The€statute€in€question€in€this€case,€Tenn.Ð 4„ ÐCode€Ann.€ðð37„5„105(1),€states€that€the€DCS€Commissioner€has€the€power€and€duty€to:Ð  p ÐÌà8  à(1)€€Select€and€recommend€to€the€appropriate€state€officials€the€employment€orÐ øH Ðtransfer€of€all€personnel€required€for€the€operation€of€the€department,€except,Ð ä4 Ðhowever,€the€transfer€of€any€employees€pursuant€to€this€chapter€or€the€initialÐ Ð  Ðorganization€of€the€new€department€pursuant€to€this€chapter€shall€not€result€in€anyÐ ¼  Ðimpairment,€interruption€or€diminution€of€employee€rights,€privileges,€salary,Ð ¨ø Ðbenefits,€leave€accumulation€or€employment.ДäÐ Ð  ÐÌIn€light€of€the€above€language,€this€Court€must€decide€whether€the€pay€differential€was€a€right,Ð l¼ Ðprivilege,€salary€or€benefit€for€the€appellees€and,€if€so,€whether€the€decision€to€eliminate€suchÐ X ¨ Ðdifferential€was€a€part€of€the€transfer€of€the€appellees€and/or€the€initial€organization€of€DCS.Ð D!” ÐÌà  àIn€his€testimony,€the€€Director€of€Program€Operations€for€DCS,€Ken€Steverson,€admitted€thatÐ #l! Ðthe€pay€differential€was€a€form€of€benefits.€€In€addition,€Jeff€Light,€the€DHS€Personnel€Manager,Ð $X" Ðtestified€that€although€initially€the€differential€was€funded€through€the€DHS€general€fund,€it€was€laterÐ ô$D # Ðfunded€in€the€budget€as€a€specific€payroll€element€for€the€on„call€positions.€€Susan€Huffman,€anÐ à%0!$ Ðappellee,€testified€that€when€she€began€to€work€for€DHS€she€was€told€that€as€a€CPS€on„call€employeeÐ Ì&"% Ðshe€would€receive€a€one„step€raise.Ô‡ôüòXXÔ€€Ô#†XXòôüä#ÔPaul€Vandermere,€the€Budget€Director€of€DCS,€testified€that€forÐ ¸'#& Ðthe€year€of€1996„1997,€the€year€the€appellees€were€receiving€the€pay€differential€as€DCS€employees,Ð ¤(ô#' Ðthe€differential€amount€was€included€in€the€ð ðline€item€salaryðð€of€the€DCS€budget.€€In€light€of€theÐ )à$( Ðforegoing,€we€find€that€the€appellees€were€receiving€the€differential€as€salary€or,€at€the€very€least,€aÐ |*Ì%) Ðbenefit€associated€with€participating€in€the€CPS€on„call€rotation.€€Therefore,€the€elimination€of€theÐ h+¸&* Ðdifferential€resulted€in€the€ð ðimpairment,€interruption€or€diminutionðð€of€the€appelleesðð€salaries€orÐ ° Ðbenefits.€€Ð œì ÐÌà  àThe€elimination€of€the€pay€differential€occurred€after€such€recommendation€was€made€by€aÐ tÄ Ðtransition€team.€€According€to€Mr.€Steverson,€this€ð ðdepartmental€transition€teamðð€was€developed€byÐ `° ÐDCS€ð ðto€look€at€.€.€.€pulling€the€staff€from€six€(6)€different€departments€together€into€a€singleÐ L œ Ðcollusive€unit.ðð€€The€transition€team€became€aware€of€the€pay€differential€within€the€first€six€months€Ð 8 ˆ Ðof€the€transition€team€meetings.€€Mr.€Steverson€testified€that€ð ð[t]he€issue€[of€the€pay€differential]€withÐ $ t Ðthe€transition€was€one€of€equity€for€our€other€staff€members.ðð€€In€a€letter€to€State€Senator€MichaelÐ  ` ÐR.€Williams€dated€August€15,€1997€regarding€the€elimination€of€the€pay€differential,€CommissionerÐ ü L  ÐHattaway€stated€that€DCS,€as€created€by€the€legislature,€merged€ð ðparts€or€all€of€six€differentÐ è 8  Ðdepartments€serving€children€and€families€in€Tennesseeðð€and€part€of€the€DCS€mandate€€ð ðwas€toÐ Ô$  Ðcreate€one€set€of€policies€and€procedures€for€the€department.€€During€this€process€[DCS]€discoveredÐ À  Ðsome€areas€of€inequity€among€our€case€managers€in€the€field€in€regard€to€the€on„call€policy.ððÐ ¬ü  ÐÌà  àIn€light€of€the€foregoing,€we€find€that€the€decision€to€eliminate€the€pay€differential€was€madeÐ „Ô  Ðas€part€of€the€initial€organization€of€DCS€and€the€transfer€of€the€appellees.€€As€the€Chancery€CourtÐ pÀ Ðpointed€out,€ð ð[i]t€is€clear€that€the€legislature€intended€to€ensure€that€DHS€employees€who€transferredÐ \¬ Ðto€DCS€were€unaffected€by€the€transition.ðð€€Therefore,€we€find€that€Commissioner€HattawayððsÐ H˜ Ðdecision€to€eliminate€the€pay€differential€was€in€direct€violation€of€Tenn.€Code€Ann.€ðð€37„5„105(1).Ô_Ô׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×Ô_ÔÐ 4„ ÐÌà  àThe€judgment€of€the€trial€court€is€affirmed€and€the€cause€remanded€to€the€Chancery€Court€forÐ  \ ÐDavidson€County€for€any€further€proceedings€necessary.€€Tax€the€costs€on€appeal€to€the€appellants,Ð øH ÐEleanor€Ô_ÔYoakumÔ_Ô,€as€Commissioner€of€the€Department€of€Personnel€and€George€Ô_ÔHattawayÔ_Ô,€asÐ ä4 ÐCommissioner€of€the€Department€of€Childrenððs€Services.Ð Ð  ÐÌà  àÌÌÌà  àà ` àà ¸ àà  àà h àà À à_________________________________________Ð l¼ Ðà  àà ` àà ¸ àà  àà h àà À àBEN€H.€CANTRELL,€PRESIDING€JUDGE,€M.S.Ð X ¨ Ð