Duncan
Duncan v. Department of Personnel Administration
Opinion
Opinion
Masterson, J.
This appeal presents the principal question of whether the due process clause entitles a public employee to a predeprivation hearing before he is demoted in lieu of layoff. We conclude that such a hearing is not required and that a postdemotion hearing is sufficient.
Background
On March 12, 1990, plaintiff Robert Duncan went to work for the California Department of Insurance (DOI) in Los Angeles as an associate life actuary. After completing his probationary period, Duncan became a permanent civil service employee. His primary responsibility was to ensure that the premiums charged by health insurance carriers were within the limits allowed under state insurance laws. Duncan also reviewed legislation and handled consumer complaints.
In an August 1996 “Special Report” to employees, the DOI discussed the “current financial crisis [facing us].” The report explained that the crisis was due in part to lawsuits that had successfully challenged the DOI’s imposition of certain fees and assessments on insurers. In addition, the Legislature had put a cap on the revenue the DOI could raise through fees. (See Stats. 1996, ch. 187, § 3.) The Legislature had also reduced the DOI’s…