Talk Left has a good story (although it doesn't link the original source) about a New York City police officer and two firefighters who filed a wrongful termination suit against the city when they were dismissed "after wearing blackface during a Labor Day float [sic] and mocking the death of an African-American man in Texas." Then-Mayor Giuliani voiced the opinion that the men should be fired, even though the authority to fire the men rested with the Police and Fire Commissioners, and not Rudy. Apparently (although it is not entirely clear from the story) the men were fired after hearings before their respective commissioners, and the plaintiffs are arguing they didn't get due process because Rudy's statements made it impossible to get a fair hearing (since the commissioners report to Rudy). One of the plaintiffs' attorneys also suggested that Rudy's comments were designed to rehabilitate his own tarnished record on racial issues.

It's hard to have any sympathy for the plaintiffs. If participation in the parade was part of their official duties (or they were off-duty, but identifying themselves by their affiliation to the NYPD and FD), the city had every right to fire them. If they were acting completely as private citizens and not identifying themselves with their employer, their free speech argument might have some merit. Nevertheless, the views they expressed definitely call into question their ability to fulfill their most important job duty, to serve and protect all of the public. (They were essentially saying that a black crime victim deserved ridicule, not sympathy.) If there was cause to fire them, the fact that Rudy spoke out of place isn't particularly relevant. From what I've read (which is just the Talk Left comment), these guys don't deserve any damages, or reinstatement.

Update: Here's how the NYT reports it.