Service Employees International Union, Local 509 v. Auditor of the Commonwealth

# Court Rules on Privatization of Mental Health Jobs **What Happened** The Service Employees International Union challenged the Department of Mental Health's plan to privatize certain jobs—meaning shifting work from state employees to private companies. The union argued the privatization violated Massachusetts's Pacheco Law, which requires the state to demonstrate that privatization won't harm public workers and their services. **What the Court Decided** Massachusetts's highest court sided with the state. The judges confirmed that the Auditor of the Commonwealth properly reviewed the privatization plan and found it met all legal requirements under the Pacheco Law. The court upheld the state's authority to move forward with the privatization. **Why This Matters** This ruling clarifies how strictly Massachusetts will enforce protections for state workers facing privatization. While the Pacheco Law exists to protect workers' jobs and wages, this case shows courts give government agencies considerable flexibility in approving privatization plans. Workers challenging similar proposals may face an uphill legal battle in Massachusetts courts.