Seattle’s New Payroll System Prompts Wage Theft Suit

A Seattle firefighter is one of three named plaintiffs who have filed a class action lawsuit accusing the city of wage theft. Travis Stanley, who is identified in the suit as a firefighter with 28 years of experience, along with engineering supervisor Nathaniel Hunter, and police sergeant Aaron Dalan filed suit in King County Superior Court.

The suit alleges a new payroll system that was implemented last September, has resulted in the violation of state and municipal payroll laws. Quoting from the complaint:

• On or around September 3, 2024, the City of Seattle activated a new payroll system powered by Workday. The implementation of Workday has caused significant problems with the accurate and timely payment of compensation and provision of leave accruals to City employees across departments, job classifications, pay rates, and professions.
• These problems include, but are not limited to, the following:
  • Payment of less than the amount of compensation owed;
  • Failure to pay earned overtime;
  • Incorrect pay rates;
  • Incorrect and excessive deductions from wages;
  • Incorrect leave accruals;
  • Incorrect leave deductions;
  • Incorrect withholding of deferred compensation; and
  • Failure to properly pay out deferred compensation.
• In advance of implementing Workday, the City of Seattle knew or should have known that there was a high likelihood City employees would be improperly paid. Numerous state and local government entities that have implemented Workday over the last several years have encountered such problems, including the state of Maine, the state of Oregon, the city of Baltimore, and the city of Los Angeles.
• The City of Seattle implemented Workday despite the repeated issues that Workday has caused to other governmental entities and without first testing and verifying that all employees would receive accurate paychecks and pay statements under the new system.
• As a result of the implementation of Workday, Plaintiffs and Class members have found numerous errors in their paychecks and pay statements.
• The errors caused by the City of Seattle’s implementation of Workday have resulted in significant disruption and annoyance for Plaintiffs and Class members. Plaintiffs and Class members have been forced to spend hours identifying and attempting to correct errors.
• Plaintiffs and Class members have also had to weather incorrect paycheck amounts, leading many to experience financial strain or uncertainty about when or whether they would be able to pay their bills and other costs of living on time.
• Plaintiffs and Class members have complained to the City of Seattle through various channels, including their unions, but they continue to receive incorrect paychecks and pay statements.
• Although the City of Seattle has insisted that it is attempting to fix Workday, the violations are ongoing.

The complaint includes three counts:

• Failure to Pay Compensation Owed in violation of Seattle Municipal Code 14.20.020 (local law title Seattle Wage Theft Ordinance)
• Failure to Ensure Correct Accrual of Sick and Safe Time in violation of SMC 14.16.065
• Failure to Provide Written Notice of Overpayments and Excessive Overpayment Deductions from Paychecks in violation of Revised Code of Washington 49.48.200 and .210 (state law)

The plaintiffs are asking the court to order an accounting, fix the system, and pay damages to all class members. Here is a copy of the complaint: