A state appeals court ruled Monday that the Rauner administration violated state law when it stopped awarding step increases to eligible employees in 2015 when a contract with the largest state employee union expired.

The ruling, though, does not mean thousands of state workers will get retroactive pay increases. Instead, the Fifth District Appellate Court sent the issue back to the Illinois Labor Relations Board for further consideration.

The Rauner administration issued a statement saying it “is reviewing the decision and will decide shortly what next steps it plans to take.”

The issue of step increases for members of the American Federation of State, County and Municipal Employees came out of the ongoing dispute between the union and the state over terms of a new labor contract. AFSCME’s last contract with the state expired June 30, 2015.

Shortly before the contract expired, the administration said it would stop paying step increases, even though AFSCME contended that labor law requires that the status quo be maintained on contract provisions while a new agreement is negotiated.

Step increases are raises paid to employees in the early part of their careers. Depending on a person’s job, they can receive step increases from seven to 10 years. AFSCME said about 40 percent of the 38,000 state workers they represent qualify for step increases.

The union filed an unfair labor practice charge over the state’s action. The Illinois Labor Relations Board ruled against AFSCME and the union challenged the decision in court.

The appeals court said that the ILRB’s decision was in error. It said past practice showed the step increases continued even after a previous contract expired and a new one was negotiated.

“Accepting the ILRB’s reasoning would eviscerate the requirement that an employer maintain the status quo during collective bargaining,” the court said.

The court ordered that the issue be sent back to the ILRB.

“We’re pleased that the court has halted Governor Rauner’s illegal action preventing thousands of public service workers from receiving their lawful step increases,” AFSCME executive director Roberta Lynch said in a statement. “This is money that working people were promised when they were hired, money they have earned and are counting on to help support their families and pay their bills.”

However, it is not clear when, or even if, any workers will see money from the step increases. The appeals court did not address if money had been appropriated by the General Assembly to pay the step increases. A state Supreme Court ruling in a different case said that raises do not have to be paid if the legislature doesn’t appropriate money for them. Those are issues that will have to be resolved after the case is sent back to the ILRB

The step increase issue is separate from the larger issue of whether the state and AFSCME have reached an impasse in their negotiations on a new collective bargaining agreement to replace the one that expired in 2015. The state said the two sides are at impasse, which would give the administration the right to unilaterally impose its contract terms. The union said the two sides are not at impasse.

That case is pending before the Fourth District Appellate Court. Arguments in that case are now expected to be made early next year, with a ruling expected sometime later. It is widely assumed whichever side loses will then appeal to the state Supreme Court.

Contact Doug Finke: doug.finke@sj-r.com, 788-1527, twitter.com/dougfinkesjr