The Scottsdale, Arizona, city council recently approved an overtime policy that has prompted protests from local police union representatives.
The previous system allowed non-worked hours such as vacation time and sick leave to contribute to the total number of working hours on an officer's payroll.
By implementing the change, city officials estimate that as much as $800,000 could be saved.
"Instead of cutting (pay) across the board, I thought this was a more specific change that will save us money," City Councilman Dennis Robbins told the Arizona Republic.
However, James Hill, the president of the Police Officers of Scottsdale Association, raised concerns that the new policy will make officers less willing to respond when called into work.
"Why would I come in on my day off, take time from my family, and not be compensated for overtime?" Hill said.
By implementing similar measures, the Providence, Rhode Island, police department was able to reduce its annual overtime spending from $5.6 million in the 2010-2011 fiscal year to a projected $2.5 million in fiscal year 2011-2012.
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