A lawsuit filed last year by 31 Chickasha, Oklahoma firefighters contending the city violated the Fair Labor Standards Act has been settled for $141,710.91. The firefighters claimed that the city failed to include longevity pay in their regular rate when calculating overtime compensation.
The suit was filed in U.S. District Court for the Western District of Oklahoma. Here is more on the original filing from FirefighterOvertime.org. Here is a copy of the original complaint.
The settlement was reached yesterday and approved by the Chickasha City Council. According to the Express-Star, the city council also approved a memorandum of understanding with IAFF Local 2041 pending a new collective bargaining agreement. More on the story.
For those not familiar with the term regular rate and its connection to wage augments such as longevity pay, let’s review. A common mistake is to assume an employee’s regular rate is their normal hourly rate, or the rate specified in an employment agreement. However, regular rate as defined in the FLSA must include all remuneration paid to the employee. Thus additional payments such as longevity pay, acting out of rank/step-up pay, shift differentials, incentives and similar wage augments must be factored into regular rate. As explained by Bill Maccarone at FirefighterOvertime.com, the topic is both important and challenging:
Proper calculation of an employee’s regular rate is critical. All FLSA overtime must be paid at a rate not less-than time and one-half of the employee’s regular rate. Failure to include all remuneration in an employee’s regular rate will result in shorting that employees overtime rate of pay, which will in-turn likely violate the FLSA. Calculating the correct regular rate can be especially challenging… . In fact, allegations of regular rate violations continue to be the leading claim made by firefighters in FLSA lawsuits today.
Don’t miss our upcoming advanced FLSA webinar: Advanced FLSA: I Think We Screwed Up, What Do We Do Now? August 16, 2021 – 1PM Eastern.
We also have the following programs coming up this fall: