A federal judge has denied a request by Montana Public Service Commission member Molnar to halt a disciplinary requirement that bars him from working in the PSC office, allowing the remote work restriction to remain in place while the case proceeds.
Senior U.S. District Judge Donald Molloy issued the ruling following a hearing held last week on Molnar’s bid for a preliminary injunction. The decision keeps Molnar working remotely rather than returning to the agency’s physical offices.
Background on the Dispute
Molnar filed suit against PSC President Jeff Welborn, Vice President Jennifer Fielder, and Commissioner Annie Bukacek after the three voted in May to impose disciplinary action against him, including the remote work requirement. The lawsuit alleges the disciplinary measures were improper.
The case sits at the intersection of elected-official conduct and constitutional protections — questions that Judge Molloy addressed directly in his ruling.
What the Judge Found
Molloy acknowledged that some of the conduct cited in investigative reports against Molnar was constitutionally protected activity. However, he drew a clear line at other alleged behavior, finding that accusations of “unwelcome sex-based remarks” and other actions directed at PSC staff did not qualify for that protection.
Even setting aside the protected conduct, Molloy concluded the unprotected workplace misconduct on its own was sufficient to justify the disciplinary action taken by the three commissioners. “Even if one excises the protected activity from the decision-making process,” Molloy wrote, “the record shows that Defendants would have taken the adverse action in light of Molnar’s workplace misconduct and his harassment of staff.”
The judge also found that removing Molnar from the office had a real impact on his ability to carry out his duties as an elected official — a point that might have favored Molnar’s injunction request. But Molloy found that concern was outweighed by insufficient evidence that Molnar was genuinely working to correct his behavior.
In a pointed line addressing Molnar’s conduct since the disciplinary vote, Molloy wrote that “managing not to be the subject of a formal workplace complaint for seven months is a minimum standard of conduct for an elected official, not an achievement.” The judge made clear that a period of no formal complaints should not be treated as evidence of meaningful improvement.
What Comes Next
Judge Molloy ordered both parties to return to court next month with a proposed timeline for the next steps in the litigation. A trial date has not yet been set but could be scheduled at that time or afterward.
With the injunction denied, the remote work restriction remains enforceable while the underlying lawsuit moves toward resolution. Molnar’s legal team will need to press their claims through the full litigation process rather than securing immediate relief through an injunction.
Broader Implications
The dispute over Molnar’s status has drawn attention to how Montana’s elected commissions handle internal misconduct allegations against sitting commissioners. Unlike agency employees who serve at the pleasure of an executive, PSC commissioners are elected by voters — a dynamic that complicates discipline and removal, and that featured prominently in both sides’ arguments before the court.
The case is among several legal disputes in Montana where courts are being asked to weigh individual rights against institutional authority, a pattern playing out in state and federal courtrooms alike. The outcome of the Molnar litigation could influence how future disciplinary matters are handled at the PSC and potentially at other statewide elected boards.
All three of the commissioners who voted for the disciplinary measures — Welborn, Fielder, and Bukacek — remain named defendants in the case. Their legal defense will now continue as the parties prepare for the next court appearance scheduled for next month.
