A New York State appellate court has revived a legal challenge by two tenured professors at New York University’s School of Medicine who are contesting involuntary salary reductions linked to external funding requirements. The professors, Marie Monaco and Herbert Samuels, represented by Katherine Hansen and Beth Margolis of Gladstein, Reif & Meginniss, LLP, argue that these cuts violated a de facto contract embodied in NYU’s faculty handbook, which they say guarantees academic freedom and economic security.
Previously, a lower court dismissed the case, ruling there was no evidence that the faculty handbook created a binding contract or guaranteed a specific level of salary support. However, the appellate court recently ruled that the professors had sufficiently alleged that the faculty handbook’s policies form an essential part of the employment agreement and carry contractual force preventing involuntary salary reductions.
Monaco emphasized the significance of the ruling for tenured faculty members who rely on the handbook to define their rights, warning that without this recognition, many could be treated as at-will employees. The case highlights broader concerns over tenure protections amid increasing challenges to academic job security.
The lawsuit is supported by the American Association of University Professors. Legal experts note that New York courts often resist viewing employment handbooks as binding contracts, making this decision notable.