Nevada Supreme Court rules cities have right to lay off employees because of lack of money

CARSON CITY – In a case closely watched by local governments, the Nevada Supreme Court has ruled that a district judge was wrong in keeping the city of Reno from laying off firefighters due to a lack of money.

Reno lost a continuing federal grant and notified 32 firefighters they would be laid off. The International Association of Firefighters Local 731 filed suit to stop the layoffs and to submit the issue to arbitration.

District Judge Lidia Stiglich granted the motion to halt the reductions until the issue was submitted to arbitration.

On the appeal, Las Vegas, Clark County, North Las Vegas and Henderson as well as other local governments submitted briefs backing Reno.

The court, in a decision written by Justice James Hardesty, said the collective bargaining agreement between Reno and the firefighters gives the city the right to lay off workers due to lack of funds without negotiations.

The city has “sole discretion” in this instance, said the court.

Since the dispute began, the city has found additional money to keep the firefighters employed for a year.