Despite Evers Appointing Her Replacement, A Walker Appointee Won’t Step Down

Georgia Maxwell (Labor & Industry Review Commission photo)

Six years after Gov. Scott Walker left office, an official he appointed continues to interpret state laws covering jobless pay, workplace injuries and civil rights.

Georgia Maxwell’s term as one of three members of the Wisconsin Labor & Industry Review Commission (LIRC) expired March 1, 2023, more than 18 months ago. Nevertheless she remains in the seat even though Gov. Tony Evers has appointed her replacement.

Maxwell is following the example of another Walker appointee, Fred Prehn, a Wausau dentist who refused to step down from the Natural Resources Board at the end of his term in May 2021.

As the Wisconsin Examiner reported, Republican leaders in the Legislature held off formally confirming Evers’ appointed successor to Prehn and encouraged the Walker appointee to hang on to his seat. A legal battle led to a landmark state Supreme Court ruling in June 2022 declaring Prehn could remain in the post until the Wisconsin Senate approved his successor.

In response to an interview request Monday, Maxwell said she would not answer questions about her decision and instead referred to the letter she sent Evers the day before her term expired.

In that Feb. 28, 2023 letter, Maxwell cited the Supreme Court ruling in the Prehn case and asserted her belief “in the continuity of work that we do” at the commission.

Prehn ultimately did step down from the Natural Resources Board before his successor had been confirmed. But environmental advocates said the Walker appointee’s decision to linger for 20 months after his term expired delayed efforts to advance new measures to address pollution — chief among them,  imposing limits on PFAS “forever chemicals” in groundwater.

Regardless of whether Maxwell’s decision to hold on to her LIRC post has materially affected policy — and notwithstanding the Supreme Court ruling —  critics say such maneuvers are an affront to the democratic process.

“It’s wrong,” said Jay Heck, director of the nonpartisan voting rights and good government group Common Cause Wisconsin. “When people elect a governor, he’s elected or she’s elected statewide, and the expectation is that the governor will be able to implement policies with his or her own personnel.”

The role of the labor commission

The Labor & Industry Review Commission interprets state laws governing unemployment insurance (UI), workers compensation, and the discrimination and fair labor standards laws that make up Wisconsin civil rights laws.

The three groups of laws are all administered by the state Department of Workforce Development (DWD).

The department’s equal rights division investigates discrimination in jobs and housing, labor standards such as job misclassification, child labor law violations and wage theft, Wisconsin’s family and medical leave law and other related worker protection laws.

DWD investigators review complaints filed by workers or advocates alleging violations of those and related laws. If an investigator concludes that there’s probable cause of a violation, the case can go to a hearing with witnesses and evidence before an administrative law judge.

UI and workers comp cases involve claims that workers file with DWD for benefits under those programs. If DWD accepts or rejects a claim, workers or their employers can file an appeal, which also leads to a hearing before an administrative judge.

The labor commission is the next step in the process: The three-member commission hears appeals of administrative law judge decisions, whether involving UI, workers comp or equal rights. The commission is an independent agency separate from DWD.

Commission rulings in turn can be appealed in circuit court, a process that can extend through the state court system to the Wisconsin Supreme Court.

The Labor & Industry Review Commission’s three members are appointed by the governor to staggered six-year terms and confirmed by the state Senate.

In 2019, his first year in office, Evers made his first appointment to the commission, appointing Michael Gillick, a veteran workers comp attorney. Gillick took office March 1, 2019. His term expires March 1, 2025.

Evers’ next appointment to the commission came March 1, 2021, with Marilyn Townsend, a Madison lawyer.

Republican leaders in the state Senate have never scheduled confirmation hearings or held confirmation votes for either Gillick or Townsend.

With Walker from the start

Georgia Maxwell was the last labor commission member Walker appointed before he left office at the end of 2018 after losing the election to Evers. Maxwell’s tenure on the commission has had a complicated history.

Maxwell joined Walker’s administration when he first took office after his election in 2010. She started as assistant deputy secretary at DWD in January 2011, moved to assistant deputy secretary at the Department of Financial Institutions in April 2013, and returned to DWD as deputy secretary in July 2015, according to her commission biography.

In November 2017 Walker tapped Maxwell to fill the last year and a half of a commissioner’s post that expired March 1, 2019. The state Senate confirmed her on a unanimous vote.

A year later, on Nov. 29, 2018, another commissioner, Laurie McCallum, sent Walker a letter announcing she would resign midway through her term. She announced her departure just four weeks after Evers defeated Walker’s bid for a third term as governor.

In her resignation letter McCallum said her last day would be Jan. 4, 2019.

Four days after McCallum’s announcement, Walker appointed Maxwell to fill out the balance of McCallum’s term, which ended March 1, 2023. The appointment took effect on Jan. 6, 2019.

Maxwell’s second appointment as a commissioner went before the state Senate for a confirmation vote on Dec. 4, 2018 — one month before that new appointment started. The lame-duck session vote took place on the same day that the Legislature’s Republican majority passed a series of bills placing new limits on the incoming Democrats, Gov.-elect Evers and Attorney General-elect Josh Kaul.

The confirmation vote for Maxwell’s first appointment to the commission a year earlier was unanimous. For the December 2018 confirmation vote she was one of more than 80 lame-duck Walker appointees confirmed as a group, en masse. The party-line vote was 18-15, with no Democrats voting for the slate.

For the first two months of the new Evers administration, the labor commission had only two members — although one of them, Maxwell, appeared to fill two positions. The expiration of the term for the first of those positions created the opening that Evers’ appointee Michael Gillick took starting March 1, 2019.

Maxwell remained on the commission, now solely filling out the term that Laurie McCallum had vacated — the one expiring March 1, 2023.

Asks to be reappointed

On Jan. 11, 2023, a little more than six weeks before her second term expired, Maxwell wrote to Evers asking to be reappointed for another six-year term — Holding herself out as a someone who combined “empathy and impartiality” and citing her tenure as “the longest-serving LIRC Commissioner.”

Evers declined the request, instead appointing Katy Lounsbury, an attorney and currently a staff lawyer at the Labor & Industry Review Commission, as her successor effective March 1.

Her next letter to the governor was the one Maxwell sent Evers on Feb. 28, via email.

“I have been verbally informed that you have nominated someone to succeed me as a Commissioner on the Labor and Industry Review Commission,” Maxwell wrote. “Please be advised that pursuant to [the state Supreme Court opinion in the Fred Prehn case], the ‘expiration of a defined term for an appointed office does not create a vacancy.’ … I will continue to serve as Commissioner until my successor is confirmed by the Wisconsin State Senate.

“As I outlined in my January 11, 2023 letter to you, I believe strongly in the continuity of work that we do at the Labor and Industry Review Commission. I thank you for your consideration.”

A veteran Wisconsin unemployment insurance lawyer contends Maxwell’s refusal to step down may have led to commission decisions that penalized some workers seeking to collect jobless pay.

Victor Forberger, whose law practices consist almost exclusively of assisting unemployment insurance applicants in legal disputes arising from their claims, told the Wisconsin Examiner that in the last several years he has seen commission decisions increasingly equate genuine mistakes by applicants in the information they submit as instances of fraud against the U.I system.

Changes in state law during the Walker administration as well as in procedure at the Department of Workforce Development during that period paved the way for penalizing applicants’ innocent errors as fraud, Forberger said. At the time, Maxwell was deputy secretary at DWD.

In a 2015 memo, the Labor & Industry Review Commission warned the department against assuming fraud without evidence of fraudulent intent by the person accused, he said.

Nevertheless, Forberger said he’s been seeing more recent commission decisions that have moved away from the principle that requires evidence of intent — a reversal from the agency’s own memo to DWD nine years ago.

“I chalk this all up to the influence of Georgia Maxwell,” Forberger said.

Scott Walker holdover’s labor review board term expired in 2023, but she’s still on panel was originally published by Wisconsin Examiner.