A Federal Magistrate Judge has recommended the approval of a $350,000 settlement between the City of Merced and several dozen firefighters following a 2018 FLSA lawsuit. The firefighters alleged the city’s failure to include holiday “in-lieu” pay in their regular rate of pay violated the FLSA. The city continues to assert that it did not violate the FLSA, however in ...Read More »
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Santa Clara Agrees to Pay Firefighters and Other City Workers $2.7 million for Alleged FLSA Violations . . . Again
The City of Santa Clara, California has settled an FLSA lawsuit by agreeing to pay more than 650 current and former city employees a total of $2.7 million. While the terms of the settlement require the city to make payments to over 650 potential plaintiffs, the vast majority of which are non-firefighters, we will focus on how the settlement applies ...Read More »
The crux of the plaintiff’s complaint involved alleged FLSA regular rate violations. In particular, the city’s failure to include certain wage augments in the plaintiffs’ regular rate. The FLSA requires virtually all the money an employee is paid included in his or her regular rate. Proper calculation of the regular rate is critical since all FLSA overtime must be paid at a rate of at least time-and-one-half of the employee’s regular rate. Very often employers utilize an employee’s base hourly rate to calculate the overtime rate of pay. However, the FLSA requires that all remuneration be included in the regular rate of pay.
Specifically, the plaintiffs made two basic claims:
- First, the city failed to include money paid directly to employees in lieu of receiving employer sponsored medical benefits in the regular rate.
- Second, the plaintiffs also wanted holiday pay included in their regular rate.