A federal appeals court in Chicago says a former University of Wisconsin administrator was not treated unfairly.
Paul Barrows was placed on leave after resigning over sexual harassment allegations.
He claimed the university wrongly forced him to take months of sick leave and vacation after he stepped down as vice chancellor for student affairs under pressure in November 2004.
His lawsuit argued he should have been placed in a backup job guaranteed in his employment contract instead.
But the 7th Circuit Court of Appeals in Chicago disagreed.
The case embarrassed the university when lawmakers discovered Barrows was allowed to collect his $191,000 salary during an eight-month leave after his resignation while he looked for other jobs.
It also prompted the UW System Board of Regents to put tighter rules on sick leave and abolish many backup jobs, a perk that had guaranteed administrators lesser jobs if they resign or were fired.