Nichols

Jeffrey S. Blanck, Esq., Law Office of Jeffrey S. Blanck, Reno, NV, for the appellant.

C. Robert Cox, Esq. and Christopher D. Jaime, Esq., Maupin, Cox & LeGoy, Reno, NV, for the appellee.

Before: THOMAS M. REAVLEY, [*] M. MARGARET McKEOWN, and RICHARD A. PAEZ, Circuit Judges.

Opinion by Judge McKEOWN; Dissent by Judge REAVLEY.

The opinion filed June 24, 2011 is withdrawn and replaced with the accompanying opinion.

With these amendments, Judge McKeown and Judge Paez vote to deny the petition for panel rehearing and Judge Reavley votes to grant the petition for panel rehearing.

Judge McKeown and Judge Paez vote to deny the petition for rehearing en banc and Judge Reavley recommends granting the petition for rehearing en banc.

The full court has been advised of the petition for rehearing and rehearing en banc and no judge has requested a vote on whether to rehear the matter en banc. Fed. R.App. P. 35.

The petition for panel rehearing and petition for rehearing en banc are denied. No further petitions for en banc or panel rehearing shall be permitted.

McKEOWN, Circuit Judge:

This case tests the bounds of a public employer's right to discharge or demote an employee for taking…