Ind. Education Employment Relations Board and Nettle Creek School Corp. v. Nettle Creek Classroom Teachers Assoc. , 26 N.E.3d 47 ( 2015 )


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  •                                                                    Jan 28 2015, 9:58 am
    ATTORNEYS FOR APPELLANT                                    ATTORNEYS FOR APPELLEE
    INDIANA EDUCATION EMPLOYMENT                               Eric M. Hylton
    RELATIONS BOARD                                            Laura S. Reed
    Gregory F. Zoeller                                         Riley Bennett & Egloff, LLP
    Attorney General of Indiana                                Indianapolis, Indiana
    David Steiner
    Deputy Attorney General
    Indianapolis, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    Indiana Education Employment                               January 28, 2015
    Relations Board and Nettle                                 Court of Appeals Cause No.
    Creek School Corporation,                                  49A02-1402-PL-78
    Appeal from the Marion Superior
    Appellants,
    Court
    The Honorable Thomas J. Carroll,
    v.                                                 Judge
    Cause No. 49D06-1204-PL-16036
    Nettle Creek Classroom
    Teachers Association,
    Appellee
    Bradford, Judge.
    Case Overview
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015                 Page 1 of 18
    [1]   In 2011, Appellant Nettle Creek School Corporation (the “School
    Corporation”) and Appellee Nettle Creek Classroom Teachers Association (the
    “Association”) were engaged in collective bargaining for the 2011-2012 school
    year. The School Corporation and the Association (collectively, “the parties”)
    were unable to agree to a Collective Bargaining Agreement (“CBA”) and came
    to an impasse. Both sides submitted a last best offer (“LBO”) to Appellant the
    Indiana Education Employment Relations Board (the “Board”) after mediation
    failed.
    [2]   The Association initiated judicial review after the Board adopted the School
    Corporation’s LBO. On November 27, 2013, the trial court found that the
    Board erroneously determined that the relevant proffered provisions of the
    parties’ LBOs included an improper attempt to bargain hours rather than
    wages. The trial court also found that the Board erroneously concluded that the
    Association’s LBO contained an improper attempt by the Association to
    bargain for an overtime compensation system that is inconsistent with both
    Federal and Indiana law.
    [3]   Upon review, we conclude that while teachers are not entitled to earn overtime
    for the completion of direct teaching functions, the relevant legal authority does
    not exclude the bargaining for and potential receipt of additional wages for the
    completion of required ancillary or voluntary co-curricular duties. Accordingly,
    we remand the matter to the Board for further proceedings that are consistent
    with this opinion.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015   Page 2 of 18
    Facts and Procedural History
    [4]   In 2011, the parties were engaged in collective bargaining for the 2011-2012
    school year. The parties, however, were unable to agree to a CBA and came to
    an impasse. In light of the parties’ failure to agree to a CBA, the parties
    participated in mediation. After mediation failed, both sides submitted a LBO
    to the Board. The disputed issues related to the Association’s request for
    additional compensation for required hours worked outside the normal
    workday and certain grievance procedures.1
    [5]   On November 29, 2011, the Board appointed a factfinder to hear the parties’
    case. With respect to the parties’ dispute relating to the Association’s request
    for additional compensation for hours worked outside the normal seven-and-
    one-half-hour workday, the Association’s proffered version of the provision at
    issue reads as follows:
    A.     (With the understanding that the established contractual
    teacher work day is seven hours and thirty minutes),[2] the [School
    Corporation] shall have the right to require a total of fifteen (15) hours
    1
    The parties’ dispute relating to the grievance procedures is not at issue in the instant appeal.
    2
    The parties do not appear to dispute that the School Corporation expects its teachers to work seven-
    and-one-half hours each day.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015                              Page 3 of 18
    after school activities per semester for each full-time teacher, without
    additional compensation.
    B.      The compensation for each hour in excess of the fifteen (15)
    hours shall be based on the following rate:
    Thirty Four (34) dollars per hour.
    Appellant’s App. p. 80. The School Corporation’s proffered version of the
    provision at issue reads as follows:
    Teachers are professional employees and are paid on a salary basis
    rather than an hourly basis. The length of the normal work day for
    teachers will be 7.5 hours. This normal teacher work day may be
    extended as necessary to prepare and update lesson plans and other
    instructional materials; conduct parent/teacher conferences; evaluate
    and record student performance; meet with students to counsel them
    and address their academic needs; attend and present information at
    faculty committee meetings, case conferences; participate in
    instructional leadership activities, including the responsibility for
    conducting program and staff evaluation; and participate in co-
    curricular assignments and extra-curricular assignments listed in the
    ECA Schedule in this Collectively Bargained Agreement.
    Appellant’s App. p. 99. Following a hearing, the factfinder issued a
    recommended order in which it adopted the School Corporation’s LBO as the
    parties’ CBA for the 2011-2012 school year. On January 11, 2012, the
    Association appealed the factfinder’s order to the Board.
    [6]   The Board held a hearing on January 24, 2012, after which it issued a final
    order. With respect to the parties’ dispute relating to the Association’s request
    for additional compensation for required hours worked outside the normal
    workday, the Board stated the following:
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015          Page 4 of 18
    Under [Indiana Code chapter] 20-29-4 and [Indiana Code section] 20-
    29-6-18(b), the [Board’s] decision in this matter is restricted to wages,
    salary, and wage-related fringe benefits. In light of strong statutory
    language and legislative intent toward restricting contracts to these
    limited subjects, we are bound to omit from the imposed contract any
    language referring to other subjects. Compensation for hours worked
    outside the contracted work day and work year is a problematic issue,
    because it suggests a determination of hours to be worked. Hours,
    previously a subject of bargaining, has been legislatively re-categorized
    as an item for the discussion process under [Indiana Code section] 20-
    29-6-7, and, as such, may not receive even a mention in the contract.
    In order to comply with these statutory mandates here, the contract
    imposed by the [Board] for the Nettle Creek teachers cannot include
    Article IV of the School Corporation’s LBO or Article III, Section G of
    the Association’s LBO, as both contain daily hours of work.
    ****
    6. [Indiana Code chapter] 20-29-4, [Indiana Code section] 20-29-6-
    18(b), and [Indiana Code section] 20-29-6-4.5(a)(5) make abundantly
    clear that all contracts imposed by [the Board] in the factfinding
    process are restricted to wages, salary, and wage-related fringe benefits.
    7. In order to reconcile the statutory mandates of [Indiana Code
    section] 20-29-6-15.1 and [Indiana Code section] 20-29-6-18(b) in this
    case, and to assure that the contract we impose contains only
    statutorily-permissible language, the [Board] will strike the
    impermissible portion and adopt the remainder of one party’s LBO.
    8. Were we to find that both LBOs contained only permissible
    language in regards to hours, we would, nonetheless, be bound to
    reject the Association’s proposal on compensation. An “overtime”
    system that permits different rates of pay based on the number of hours
    worked is precluded by statutory individual contract requirements.
    Specifically, [Indiana Code section] 20-28-6-2(a)(3)(C) provides that a
    “contract entered into by a teacher and a school corporation must …
    contain the … total salary to be paid to the teacher during the school year…”
    [emphasis added]. The individual teacher’s contract could not be
    executed under an “overtime” compensation system because such a
    system would make it impossible to calculate a total salary to be paid
    during the school year in advance because the salary would be
    adjusted throughout the year based on the number of hours the teacher
    works.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015          Page 5 of 18
    Appellant’s App. pp. 206-07, 209-10 (emphasis and last set of brackets in
    original, footnotes omitted). Consistent with the above-stated language, the
    Board found as follows: “[t]he Association’s appeal is denied and the School
    Corporation’s [LBO] is adopted as the Nettle Creek contract, except insofar as
    any references to the hours of work … in the School Corporation’s [LBO] shall
    be omitted from the contract.” Appellant’s App. p. 213.
    [7]   On April 18, 2012, the Association filed a verified petition for judicial review of
    the Board’s decision in the trial court. On May 9, 2012, the School Corporation
    filed its answer to the Association’s petition. On June 13, 2012, the Board also
    filed an answer to the Association’s petition. The Association subsequently
    filed a motion for judgment on the administrative record and supporting
    memorandum. The Board filed a response in opposition to the Association’s
    motion on September 30, 2013. On October 11, 2013, the School Corporation
    filed a notice of its intention not to file a response to the Association’s motion.
    The Association subsequently filed a reply in favor of its motion.
    [8]   On November 27, 2013, the trial court issued its findings of fact and
    conclusions thereon. Specifically, the trial court found as follows:
    15.     The issue in this case is whether [the Board] incorrectly rejected
    the Association’s LBO based on its determination that [Indiana Code
    section] 20-29-6-4 prohibits the Association and the School
    Corporation from bargaining additional compensation for hours
    worked outside a teacher’s contracted work day, and its determination
    that the Association’s LBO would create a compensation system in
    violation of [Indiana Code section] 20-28-6-2. Additionally, what
    remedy should be entered if [the Board] incorrectly rejected the
    Association’s LBO is also at issue.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015        Page 6 of 18
    ****
    17.     … [I]t is this Court’s determination that [the Board] incorrectly
    determined that [Indiana Code section] 20-29-6-4 does not permit the
    School Corporation and the Association to bargain pay for additional
    hours worked outside a teacher’s regular teacher’s contract, and
    incorrectly determined that the Association’s LBO would “create a
    compensation system in violation of [Indiana Code section] 20-28-6-
    2(a)(3)(c).” (R. 490-91).
    18.     As a result, the Court finds that [the Board’s] decision is
    arbitrary, capricious and not in accordance with the law. 
    Ind. Code § 4-21.5-5
    -14.
    *****
    25.     The bargaining of additional wages for additional hours worked
    outside the contracted work day does not bargain hours, but instead bargains
    wages.
    26.     At no time does the School Corporation lose the power to determine
    how many hours teachers work per day. Instead, the School Corporation
    unilaterally determines the number of hours and if a teacher is required to work
    additional hours outside the contracted work day, [Indiana Code section] 20-
    29-6-4(a)(2) allows wages to be bargained to compensate teachers for this
    additional work.
    27.     Therefore, [the Board] incorrectly held that “Compensation for
    hours worked outside the contracted work day is a problematic issue,
    because it suggests a determination of hours to be worked.”
    28.     Next, [the Board] incorrectly held that:
    An “overtime” system that permits different rates of pay based on the
    number of hours worked is precluded by statutory individual contract
    requirements. Specifically, [Indiana Code section] 20-28-6-2(a)(3)(C)
    provides that a “contract entered into by a teacher and a school
    corporation must … contain the … total salary to be paid to the teacher
    during the school year.…” [emphasis added]. The individual teacher’s
    contract could not be executed under an “overtime” compensation
    system because such a system would make it impossible to calculate a
    total salary to be paid during the school year in advance because the
    salary would be adjusted throughout the year based on the number of
    hours the teacher works.”
    29.     [The Board’s] decision does not take into consideration all of
    the language of [Indiana Code section] 20-29-6-4(a) which states:
    (a) A school employer shall bargain collectively with the exclusive
    representative on the following:
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015              Page 7 of 18
    (1) Salary.
    (2) Wages.
    (3) Salary and wage related fringe benefits, including accident,
    sickness, health, dental, vision, life, disability, retirement benefits, and
    paid time off as permitted to be bargained under [Indiana Code
    section] 20-28-9-11.
    ****
    31.     The $34/hour that the Association proposed in its LBO is the
    bargaining of “wages” and not “salary.” Therefore, the Association’s
    proposal does not violate [Indiana Code section] 20-29-6-4.
    ****
    40.     Again, if the parties were to agree to the Association’s wage
    proposal, they would not be bargaining the number of hours worked.
    Instead, the School Corporation would control how many hours
    teachers worked above and beyond the hours contained in their regular
    teacher’s contract. The only change is that the parties will be allowed
    to bargain wages for this additional work.
    41.     This gives a school corporation flexibility if it needs to add
    hours on top of what is in a regular teacher’s contract and provides
    wages to teachers for working the extra hours.
    42.     [The Board] was concerned that allowing the bargaining of
    additional wages would violate [Indiana Code section] 20-3-28-6-
    2(a)(3)(C) because the regular teacher’s contract must contain the total
    “salary” to be paid to a teacher during the school year. This ruling has
    no effect on a teacher’s “salary.” Instead, this ruling allows the
    bargaining of additional “wages” for additional hours worked beyond
    what is contained in a regular teacher’s contract.
    43.     As previously stated, “salary” and “wages” are two separate
    items that can be bargained under [Indiana Code section] 20-29-6-4
    and therefore have different meanings.
    44.     Based on the foregoing, this Court finds that under [Indiana
    Code section] 20-29-6-4, school corporations and teacher associations
    can bargain additional wages for hours worked over the number of
    hours contained in a regular teacher’s contract.
    45.     The Court further finds that the wage proposal made by the
    Association at fact-finding in its LBO is permissible and can be
    bargained under [Indiana Code section] 20-29-6-4, and it does not
    violate the regular teacher’s contract statutes at [Indiana Code section]
    20-28-6-2.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015         Page 8 of 18
    Tr. pp. 374, 375, 377-78, 380 (emphasis added to Paragraphs 25 and 26;
    emphasis, brackets, and ellipses in Paragraph 28 in original). In making these
    findings, the trial court reversed the Board’s decision and ordered that the
    matter be remanded to the Board “to enter an order consistent with [the trial
    court’s order], and to make further findings [as to] whether the School
    Corporation’s or the Association’s LBO should be chosen based on a correct
    interpretation of the law as stated herein.” Appellant’s App. p. 380-81. The
    Board subsequently initiated the instant appeal.3
    Discussion and Decision
    I. Standard of Review
    [9]           While the legislature has granted courts the power to review the action
    of state government agencies taken pursuant to the Administrative
    Orders and Procedures Act [(“AOPA”)], this power of judicial review
    is limited. See State Bd. of Registration for Prof’l Eng’rs v. Eberenz, 
    723 N.E.2d 422
    , 430 (Ind. 2000); Indiana Dep’t of Envtl. Management v.
    Conard, 
    614 N.E.2d 916
    , 919 (Ind. 1993); Indiana Dep’t of Natural
    Resources v. United Refuse Co., 
    615 N.E.2d 100
    , 103 (Ind. 1993). A court
    may only set aside agency action that is:
    (1) arbitrary, capricious, an abuse of discretion, or otherwise
    not in accordance with law;
    3
    We disagree with the Association’s assertion that the Board does not have standing to prosecute
    the instant appeal.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015                        Page 9 of 18
    (2) contrary to constitutional right, power, privilege, or
    immunity;
    (3) in excess of statutory jurisdiction, authority, or limitations,
    or short of statutory right;
    (4) without observance of procedure required by law; or
    (5) unsupported by substantial evidence.
    See 
    Ind. Code § 4-21.5-5
    -14(d).
    LTV Steel Co. v. Griffin, 
    730 N.E.2d 1251
    , 1257 (Ind. 2000). “The party seeking
    judicial review bears the burden to demonstrate that the agency’s action is
    invalid.” Pendleton v. McCarty, 
    747 N.E.2d 56
    , 61 (Ind. Ct. App. 2001) (citing
    
    Ind. Code § 4-21-5-5
    -14(a)).
    [10]   A review of an administrative agency’s decision at the trial court level “is not
    intended to be a trial de novo, but rather the court simply analyzes the record as
    a whole to determine whether the administrative findings are supported by
    substantial evidence.” Whirlpool Corp. v. Vanderburgh Cnty.-City of Evansville
    Human Relations Comm’n, 
    875 N.E.2d 751
    , 759 (Ind. Ct. App. 2007) (citing
    Amoco Oil Co. v. Comm’r of Labor, 
    726 N.E.2d 869
    , 872 (Ind. Ct. App. 2000)). A
    party may appeal a trial court’s determination of the propriety of the
    administrative agency’s decision pursuant to the rules governing civil appeals.
    See 
    Ind. Code § 4-21.5-5
    -16. “When reviewing an administrative agency’s
    decision, appellate courts stand in the same position as the trial court.”
    Pendleton, 
    747 N.E.2d at
    61 (citing Amoco, 
    726 N.E.2d at 872
    ).
    [11]   An appellate court “may not substitute [its] judgment on factual matters for that
    of the agency and are bound by the agency’s findings of fact if [the findings] are
    supported by substantial evidence.” Whirlpool, 
    875 N.E.2d at
    759 (citing Ind.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015        Page 10 of 18
    Dep’t of Natural Res., Law Enforcement Div. v. Cobb, 
    832 N.E.2d 585
    , 590 (Ind. Ct.
    App. 2005)).
    Furthermore, courts that review administrative determinations, at both
    the trial and appellate level, review the record in the light most
    favorable to the administrative proceedings and are prohibited from
    reweighing the evidence or judging the credibility of witnesses.
    [Amoco, 
    726 N.E.2d at 873
    .] While reviewing courts must accept the
    agency’s findings of fact if supported by substantial evidence, no such
    deference need be accorded an agency’s conclusions of law, as the law
    is the province of the judiciary. 
    Id.
    Id. However, “[a]n interpretation of a statute by an administrative agency
    charged with the duty of enforcing the statute is entitled to great weight, unless
    this interpretation would be inconsistent with the statute itself.” LTV Steel, 730
    N.E.2d at 1257; State Emps. Appeals Comm’n v. Barclay, 
    695 N.E.2d 957
    , 959-60
    (Ind. Ct. App. 1998).
    II. Analysis
    A. Relevant Statutory Authority Relating to Collective
    Bargaining Between a School Corporation and the Exclusive
    Representative of Its Teachers
    [12]   Indiana Code section 20-29-6-4(a) provides that a school corporation shall
    bargain collectively with the exclusive representative of its teachers (the
    “teachers’ representative”) regarding the following: (1) salary; (2) wages; and
    (3) salary and wages related to fringe benefits, including accident, sickness,
    health, dental, vision, life, disability, retirement benefits, and paid time off.
    During collective bargaining, the school corporation and the teachers’
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015    Page 11 of 18
    representative must discuss certain items, including: (1) curriculum
    development and revision; (2) selection of curricular materials; (3) teaching
    methods; (4) hiring, evaluation, promotion, demotion, transfer, assignment,
    and retention of certificated employees; (5) student discipline; (6) expulsion or
    supervision of students; (7) pupil/teacher ratio; (8) class size or budget
    appropriations; (9) safety issues for students and employees in the workplace,
    except those items required to be kept confidential by state or federal law; and
    (10) hours. 
    Ind. Code § 20-29-6-7
    . However, “[t]he obligation to discuss does
    not require either party to enter into a contract, agree to a proposal, or make a
    concession related to the items listed in [Indiana Code section 20-29-6-7].” 
    Ind. Code § 20-29-6-8
    .
    [13]   If an impasse is declared at any time after at least sixty days following the
    beginning of formal collective bargaining, the Board shall appoint a mediator
    from the Board’s staff or an ad hoc panel. Indiana Code § 20-29-6-13(a). The
    mediation must consist of not more than three mediation sessions and must
    result in either (1) an agreement between the parties on the items permitted to
    be bargained or (2) each party’s LBO, including fiscal rationale, related to items
    permitted to be bargained. Indiana Code § 20-29-6-13(c). If an agreement has
    not been reached on the items permitted to be bargained within fifteen days of
    the end of mediation, the Board shall initiate fact-finding. Indiana Code § 20-
    29-6-15.1(a).
    [14]   Fact-finding must culminate in the factfinder imposing contract terms on the
    parties. 
    Ind. Code § 20-29-6-15
    .1(b).
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015    Page 12 of 18
    The factfinder must select one (1) party’s last best offer as the contract
    terms. The factfinder’s order must be restricted to only those items
    permitted to be bargained and included in the collective bargaining
    agreement … and must not put the employer in a position of deficit
    financing (as defined in [Indiana Code section] 20-29-2-6). The
    factfinder’s order may not impose terms beyond those proposed by the
    parties in their last, best offers.
    
    Id.
     Fact-finding must not last longer than fifteen days. 
    Ind. Code § 20-29-6
    -
    15.1(d). Either party may appeal the decision of the factfinder to the Board
    within thirty days after receiving the factfinder’s decision. 
    Ind. Code § 20-29-6
    -
    18(a). The Board’s decision must be restricted to only those items permitted to
    be bargained and included in the collective bargaining agreement and must not
    put the employer in a position of deficit financing. 
    Ind. Code § 20-29-6-18
    (b).
    The Board’s decision “may not impose terms beyond those proposed by the
    parties in their last, best offers.” 
    Id.
     The Board’s decision must be issued
    within thirty days after receipt of the notice of appeal. Indiana Code § 20-29-6-
    18(c).
    B. Salary vs. Wages
    [15]   A salary is “[a]greed compensation for services—[especially] professional or
    semiprofessional services—[usually] paid at regular intervals on a yearly basis,
    as distinguished from an hourly basis.” BLACK’S LAW DICTIONARY 1537 (10th
    Ed. 2014). A wage is “[p]ayment for labor or services, [usually] based on time
    worked or quantity produced; [specifically], compensation of an employee
    based on time worked or output of production.” B LACK’S LAW DICTIONARY
    1811 (10th Ed. 2014). “Wages include every form of remuneration payable for a
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015        Page 13 of 18
    given period to an individual for personal services, including salaries,
    commissions, vacation pay, bonuses, and the reasonable value of board,
    lodging, payments in kind, tips, and any similar advantage received from the
    employer.” BLACK’S LAW DICTIONARY 1811 (10th Ed. 2014). Indiana Code
    section 20-28-6-4(b) specifically provides that “[s]alary and wages include the
    amount of pay increases available to employees under the salary scale adopted
    under [Indiana Code section] 20-28-9-1.5, but do not include the teacher
    evaluation procedures and criteria, or any components of the teacher evaluation
    plan, rubric, or tool.”
    [16]   Under both Federal and Indiana law, a teacher is not entitled to receive
    overtime. Specifically, Section 207 of the Fair Labor Standards Act (“the Act”)
    provides that employees shall receive overtime compensation for hours worked
    in excess of forty hours per week. 
    29 U.S.C. § 207
    . However, the Act exempts
    certain employees from this requirement, including teachers employed in
    elementary or secondary schools. 
    29 U.S.C. § 213
    . “Exemptions from the Act
    are defined by regulations promulgated by the Department of Labor.” Osler
    Inst., Inc. v. Inglert, 
    558 N.E.2d 901
    , 903 (Ind. Ct. App. 1990). Although the
    statutory exemptions are to be narrowly construed, “[t]he regulations are
    entitled to great weight and have been held to carry the full force of law.” 
    Id.
    Further, Indiana Code section 20-29-6-3 provides that “[i]t is unlawful for a
    school employer to enter into any agreement that would place the employer in a
    position of deficit financing due to a reduction in the employer’s actual general
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015   Page 14 of 18
    fund revenue or an increase in the employer’s expenditures when the
    expenditures exceed the employer’s current year actual general fund revenue.”
    [17]   While we recognize that teachers are not entitled to receive overtime
    compensation for performing their “normal” teaching duties, i.e., duties that are
    completed as part of one’s direct teaching function, we further recognize that a
    school corporation may require its teachers to undertake, or a teacher may
    agree to undertake, certain duties beyond a teacher’s “normal” teaching duties.
    Specifically, a school corporation may require its teachers to perform certain
    ancillary duties, such as professional development and training or attending
    conferences. In addition, teachers may agree to take on certain co-curricular
    responsibilities, such as coaching athletic teams or sponsoring an academic or
    extracurricular club. It is undisputed that teachers may negotiate for additional
    wages for responsibilities associated with co-curricular duties that are
    voluntarily assumed by a teacher.4 In the same vein, we interpret the above-
    discussed law to allow that teachers could potentially receive additional wages
    for ancillary duties.
    4
    See Article III of the School Corporation’s LBO which sets forth the pay schedule for certain co-
    curricular responsibilities.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015                         Page 15 of 18
    [18]   Stated differently, we interpret the law to provide that although the law does
    not allow for the receipt of overtime compensation by teachers related to their
    direct teaching functions, teachers are not necessarily excluded from receiving
    additional wages for required or agreed upon ancillary duties. Notably, counsel
    for the Board conceded during oral argument that it is possible under the
    relevant statutory authority for a teacher to earn wages in addition to the
    teacher’s salary and that an agreed-upon salary for direct teaching functions
    does not exclude wages for other functions completed by the individual teacher.
    As such, we conclude that teachers may negotiate with their employers for the
    receipt of additional wages for these ancillary duties. In reaching this
    conclusion, however, we do not mean to say that a school corporation must
    compensate teachers for the ancillary duties, but only that the law allows that
    teachers may negotiate with their employers for additional compensation for
    said ancillary duties.5
    5
    Further, as our conclusion relates only to those ancillary duties that are required by the school
    corporation, any award of additional wages would not put a school corporation in a position of deficit
    spending as the school corporation controls the number of ancillary duties it requires of its teachers and
    should therefore be able to budget accordingly.
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015                         Page 16 of 18
    C. The Instant Matter
    [19]   Again, here, the Association’s proffered version of the provision at issue reads
    as follows:
    A.      (With the understanding that the established contractual
    teacher work day is seven hours and thirty minutes), the [School
    Corporation] shall have the right to require a total of fifteen (15) hours
    after school activities per semester for each full-time teacher, without
    additional compensation.
    B.      The compensation for each hour in excess of the fifteen (15)
    hours shall be based on the following rate:
    Thirty Four (34) dollars per hour.
    Appellant’s App. p. 80. During oral argument, counsel for the Association
    clarified that the Association’s proffered provision represented an attempt to
    bargain for additional wages for ancillary duties which the School Corporation
    required of its teachers and was not a request for overtime compensation for
    duties relating to teachers’ direct teaching functions.
    [20]   On remand, the Board should review the parties’ proffered LBO’s taking into
    consideration our conclusion that the parties may negotiate for additional
    wages for required ancillary duties, i.e., duties that are required by the School
    Corporation but are not considered to be direct teaching functions. We note,
    however, that in issuing this opinion, we do not mean to dictate any particular
    outcome to the Board. Our opinion merely sets forth the legal parameters
    under which the Board should consider the parties’ LBOs. The determination
    of which LBO to adopt as the parties’ contract is within the discretion of the
    Court of Appeals of Indiana | Opinion 49A02-1402-PL-78 | January 28, 2015       Page 17 of 18
    Board so long as the Board’s decision is made in accordance with the legal
    parameters set herein.
    [21]   The matter is remanded to the Board for further proceedings consistent with
    this opinion.
    Najam, J., and Robb, J., concur.
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