California park employees misuse payroll codes to collect overtime
California park officials recently came under fire for using obscure payroll codes to receive overtime pay for their unused vacation hours. The so-called "Katrina codes" are meant to be used to employee attendance in case of natural disasters, such as wildfires, according to the Sacramento Bee. However, managers are suspected of deliberately abusing the payroll system to receive premium pay instead or accrued vacation time.
Managers and other park officials are usually considered exempt from overtime provisions that require employers to pay time-and-a-half rates if employees work more than 40 hours during week. To get the extra wages, an individual needed to apply specific payroll codes to override the regular process, the source explains.
"It appears that because those codes exist that this wasn't picked up (and) that those codes were manipulated to allow this to occur," said John Hiber, the state controller's chief operating officer, as reported by the paper. The evidence suggests that the person entering the codes and changing to pay rates knew what he or she was doing, added Senator Mark Leno of San Francisco.
This is bad news for the department, especially since it is being forced to shut down 70 state parks as the result of budgeting shortfalls. Employers can ensure these types of violations do not occur by investing a secure payroll processing system that cannot be altered, or outsourcing human resources.
Managers and other park officials are usually considered exempt from overtime provisions that require employers to pay time-and-a-half rates if employees work more than 40 hours during week. To get the extra wages, an individual needed to apply specific payroll codes to override the regular process, the source explains.
"It appears that because those codes exist that this wasn't picked up (and) that those codes were manipulated to allow this to occur," said John Hiber, the state controller's chief operating officer, as reported by the paper. The evidence suggests that the person entering the codes and changing to pay rates knew what he or she was doing, added Senator Mark Leno of San Francisco.
This is bad news for the department, especially since it is being forced to shut down 70 state parks as the result of budgeting shortfalls. Employers can ensure these types of violations do not occur by investing a secure payroll processing system that cannot be altered, or outsourcing human resources.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.