A Pennsylvania school district recently settled a lawsuit involving a former school psychologist. The Burrell School District was sued by Kristin Serluco after she was furloughed in 2011. Serluco claimed that the furlough was inappropriate, and that the district owed her compensation.
The school district made a strategic decision to settle the suit. Lee Price, acting as solicitor for the district, noted disappointment in the outcome. However, they were unwilling to accrue greater legal fees, and they wanted to continue with the outsourcing project that had necessitated Serluco’s furlough.
Serluco had been employed with the district as a psychologist since 2000, and had held a tenured position since 2003. Tenure gave Serluco seniority, but when the district wanted to take cost cutting measures they decided to let her go.
Prior to 2011, the district contracted with the Westmoreland Intermediate Unit to staff its special education program. Then they decided they would rather offer in-house special education. The switch was projected to save the district some $25,000 annually. An administrator who would oversee the special education program would have to be hired. At the same time, Serluco’s job would be eliminated, mainly because her certifications did not include the supervision of teachers. The district went on to complete an outsourcing contract with Westmoreland for a psychologist.
Outsourcing meant that the district would not need to have a full-time psychologist on staff. In court documents, lawyers for the district noted a $144,000 annual savings because of the changes. Counsel for Serluco disagreed, estimating that the district likely only saved about $20,000 per year.
In December of 2013, Judge Gary Caruso found in favor of Serluco, awarding her some $200,000 in back wages. Neither the plaintiff nor the defendant were satisfied with the outcome, and both appealed to a higher court.
In the final settlement, the district will pay Serluco $175,000 in back wages and will no longer be obligated to hire her back. Many details of the settlement are being kept confidential.