Firefighter Overtime Discussing Fair Labor Standards Act (FLSA) for Firefighters, First Responders as well as Human Resource & Finance Professional
A former City of Hamilton, Ohio, firefighter has filed a federal lawsuit alleging that the Hamilton Fire Department violated both the FLSA and the Ohio Minimum Fair Wage Standards Act by “clawing back” a retention bonus in a way that caused his final paycheck to go below minimum wage. The lawsuit was filed in federal court this past Friday by former Hamilton firefighter Bryce Canupp.
According to the complaint, the Hamilton Fire Department paid Canupp a retention bonus equal to 10% of his base pay in November 2023. At that time, the city and Canupp executed an agreement that outlined the terms and conditions related to the bonus. Most notably, the agreement required that Canupp remain employed with the department until the end of 2024. Despite this requirement, Canupp voluntarily resigned in October 2024. However, what the department did in response to Canupp’s resignation is the subject of the lawsuit. Citing from the complaint:
- During Plaintiff’s final pay period with Defendant (September 21, 2024 until October 4, 2024) Plaintiff used Sick Leave on September 21, 2024 and worked 24 hour shifts on September 23, 24, 27, and 30.
- During the shift on September 27, 2024, Plaintiff took one hour of compensatory time.
- Plaintiff’s final paycheck shows that in addition to his sick pay, hourly wages, and compensatory time, he was paid $174.99 as the remainder of the clothing allowance pursuant to his Collective Bargaining Agreement, as well as $419 .44 in mandatory compensatory time cash out, plus an additional $599.94 as additional wages for riding the Medic unit during the shifts he worked.
- His final paycheck also shows deductions totaling $4,703.24.
- Plaintiff’s final pre-tax gross paycheck amounted to $370.37.
- However, had Defendant not paid Plaintiff his clothing allowance and compensatory time cash out, the final paycheck would leave Plaintiff with a negative balance of $224.06.
- Under either circumstance, Defendant failed to pay Plaintiff minimum wage for all hours worked during Plaintiff’s final two weeks of employment with Defendant.
- Defendant’s wage and hour policy caused Plaintiff to receive less than minimum wage for all hours worked in violation of 29 U.S.C. § 207(a)(l).
- Defendant knew or should have known that its conduct violated the FLSA. Specifically, Defendant attempted to avoid any challenge to its unlawful and/or unconscionable claw-back provision by attempting to limit Plaintiff from opposing or otherwise seeking redress for the claw-back, by the terms of the RBA.
Department of Labor (DOL) regulations found at 29 CFR § 531.35 entitled: “Free and clear” payment; “kickbacks” requires that wages be paid “free and clear.” Generally speaking this requires the employer to provide an employee with at least the federal minimum wage for all hours worked, regardless of contrary provisions found in a labor agreement, city policy, or other employment provisions.
As a side note, it was somewhat surprising not to see any claims related to the regular rate within the complaint. One of the biggest challenges in providing an employee with any lump-sum bonus [especially a retention bonus] lies with incorporating that bonus in an employee’s regular rate. Remember, employers must include all remuneration in an employee’s regular rate of pay. You can find more below on lump sum bonuses and the regular rate, plus a copy of the complaint.
