Recovery issues with employees
ANN COSPER
ASSISTANT LITIGATION COUNSEL
NORTH CAROLINA SCHOOL BOARDS ASSOCIATION
JULY 23, 2015
When do these issues arise?
 Teachers and other employees leave, are terminated,
retire, resign… and
 They have been paid for work they didn’t do, or
 They have left their employment while in possession
of school property

Laptops, iPads, etc.
Do you have to try to get it back?
YES
…technically.
Why?
N.C. Constitution, Article I, Section 32:
“No person or set of persons is entitled to exclusive or
separate emoluments or privileges from the
community but in consideration of public services.”
Emolument: “the returns from arising from office or
employment usually in the form of compensation…”
Merriam-Webster’s online dictionary
In English…
No special benefits can be given to a person or group of
people without the person or group of people earning the
benefits first (unless there’s a statute stating otherwise)
How do we know if it’s an “emolument”?
Town of Emerald Isle v. State, 320 N.C. 640, 652, 360
S.E.2d 756, 764 (1987)
The “emolument” passes Constitutional scrutiny IF-1. “the exemption [or benefit] is intended to promote
the general welfare rather than the benefit of the
individual,” and
2. “there is a reasonable basis for the legislature to
conclude the granting of the exemption [or benefit]
serves the public interest.”
Payment and salary issues
 N.C.G.S. 115C-302.1(b)
“…Teachers may be prepaid on the monthly pay date for days not yet worked. A teacher
who fails to attend scheduled workdays or who has not worked the number of days for
which the teacher has been paid and who resigns, is dismissed, or whose contract is not
renewed shall repay to the local board any salary payments received for days not yet
worked. A teacher who has been prepaid and continues to be employed by a local
board but fails to attend scheduled workdays may be subject to dismissal under G.S.
115C-325 [tenure statute] or other appropriate discipline.”
-115C-316(a)(1) “School Officials and Employees Other than Superintendents,
Supervisors and Classified Principals on an Annual Basis”; 115C-316(a)(2)“School
Employees Paid on an Hourly or Other Basis”
 N.C.G.S. 115C-302.1(f) [N.C.G.S. 115C-285 (principals/supervisors)]
“Each local board of education shall sustain any loss by reason of an overpayment to
any teacher paid from State funds.”
A teacher quits. Now what?
 Things to consider:
 How much has the school district overpaid?
 How much will it cost to have your Board attorney write a
letter?
 How much will it cost your district to sue?
 Other considerations…
Assume a $36,000-per-year salary…
Month
10-month payment plan
12-month payment plan
June
--
$3,000
July
--
$3,000 ($6,000)
August
$3,600
$3,000 ($9,000)
September
$3,600 ($7,200)
$3,000 ($12,000)
October
$3,600 ($10,800)
$3,000 ($15,000)
November
$3,600 ($14,400)
$3,000 ($18,000)
December
$3,600 ($18,000)
$3,000 ($21,000)
January
$3,600 ($21,600)
$3,000 ($24,000)
February
$3,600 ($25,200)
$3,000 ($27,000)
March
$3,600 ($28,800)
$3,000 ($30,000)
April
$3,600 ($32,400)
$3,000 ($33,000)
May
$3,600 ($36,000)
$3,000 ($36,000)
Scenario #1
 After devoting many years of sacrificial service to the
school system, Teacher Tarheel decides spend the rest of
his life serving underprivileged children in a leper colony
in Madagascar. Teacher Tarheel, who played football at
Carolina and of course always abides by the rules, gives
you 30 days’ notice that he will be resigning effective May
31. The Superintendent accepts his resignation.


What does your Board policy say about the Board’s payment options?
Assuming Teacher Tarheel gets paid on the first day of the month for
the coming month, when will his last paycheck arrive?

How much will his paycheck be? How much of it has he actually
earned?
 10-month
 12-month
Scenario #1, continued
 Will he get another paycheck?
 If so, when?
 For how much?
 Will he owe the district any money?
 If so, how much?
What now?
Write a threatening letter.
Sue ‘em!
Scenario #2
 Your famed basketball “Koach”, after having won his
1,000th game, decides to up and quit on September 2,
after the school year just started, leaving the district
in a devil of a situation.


What does your Board policy say about the Board’s payment
options?
Assuming Koach gets paid on the first day of the month for the
coming month, when will his last paycheck arrive?

How much will his paycheck be? How much of it has he actually
earned?
 10-month
 12-month
Scenario #2, continued
 Will he get another paycheck?
 If so, when?
 For how much?
 Will he owe the district any money?
 If so, how much?
What now?
Write a threatening letter.
Sue ‘em!
Scenario #3
 Custodian Clepto resigns, but not before absconding
with a new, expensive vacuum cleaner belonging to
the school system.
What now?
Write a threatening letter.
Sue ‘em! (or call the DA)
Other considerations
 Board policy
 Cost!
 PR
 What has your district done before?
Additional resources
 http://www.ncpublicschools.org
 Salary manual
 Benefits and Employment manual
 Your Board’s policy manual
 https://www.nctreasurer.com/Pages/default.aspx
 http://www.dol.gov/
 http://www.ncleg.net/gascripts/Statutes/Statutes.as
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 Your Board attorney!
Thank you!
Ann Cosper
Assistant Litigation Counsel
North Carolina School Boards Association
Association: (919) 841-4040
Direct: (919) 747-6681
Email: acosper@ncsba.org