In November 1980, Illinois Governor James Thompson issued Executive Order No. 5, which imposed a hiring freeze affecting approximately 60,000 state positions not exempt from the civil service system. The order required express permission from the Governor's Office of Personnel for any hiring, filling of vacancies, creation of new positions, promotions, transfers, or recalls after layoffs. The Governor's Office screened applicants and employees based on factors including whether they had voted in Republican primaries, provided financial or other support to the Republican Party, promised future support, or had the backing of Republican Party officials.
Five individuals brought suit in the United States District Court for the Central District of Illinois against state officials and Republican Party officials. Cynthia Rutan, a rehabilitation counselor employed by the state since 1974, alleged repeated denials of promotions to supervisory positions since 1981 due to lack of Republican support. Franklin Taylor, who operated road equipment for the Department of Transportation, claimed denial of a 1983 promotion and a requested transfer because of opposition from local Republican Party chairmen.
James Moore alleged repeated denials of employment as a prison guard for the same reason. Ricky Standefer, a state garage worker, asserted he was not recalled after a layoff despite other employees being recalled, because he had voted in a Democratic primary and lacked Republican support. Dan O'Brien, formerly a dietary manager in the mental health department, contended he was not recalled after layoff due to his party affiliation and only obtained a lower-paying position in the corrections department after securing support from a local Republican Party chairman.
The district court dismissed the complaint with prejudice under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. The United States Court of Appeals for the Seventh Circuit, sitting en banc, affirmed in part and reversed in part in 1989, holding that only employment decisions substantially equivalent to dismissal violated the First Amendment and dismissing the hiring claim outright. The Supreme Court granted certiorari in 1989 to address whether the First Amendment protections against patronage dismissals extend to promotion, transfer, recall, and hiring decisions.
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