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470 Pillsbury Center Kennedy 200 South Sixth Street Minneapolis MN 55402 sL Graven (612) 337-9300 telephone (612):337-9310 fax e-mill:attys@kennedy-graven.com CHARTERED JOHN M. LEFEVRE,JR. Attorney at Law Direct Dial(612)337-9218 December 3, 1997 BY FAX & U.S. MAIL Lynnette Morgan Assistant to the City Administrator City of Mounds View 2401 Highway 10 Mounds View, MN 55112-1499 RE: Personnel Issues MU210-18 Dear Ms. Morgan: • 7 Although we have not completely our review of the proposed personnel handbook as yet, I wanted to let you know of the certain policy issues which are appropriate for discussion by the council as they consider adoption of revised personnel policies. 1. At Will Employment v. Termination for Cause: In the introduction to the handbook, the description states that just as employees are free to terminate employment with the city at any time for any reason, the city remains free to terminate employment at any time for any reason not prohibited by law. This would describe the concept known as "Employment At-Will" which would also mean that there is no property right in continued employment with the city. However, at Section 1.10 dealing with Discipline, the standard for any discipline appears to be "just cause." This suggests that just cause as defined is required to be the basis for discipline up to and including termination. This is a relatively common employment policy, especially in the context of union contracts, but is not required as a matter of • employment law. I would also note that the Section 4.05 on discharge uses a "just cause" standard which is inconsistent with employment at-will. • The point is that the city needs to consider which of these two policies it wishes to adopt: that is, employment at will, or termination for cause. They are essentially inconsistent. Once this policy decision is made, then the handbook can be revised accordingly. JML134457 M13210-18