On Nov. 9, the city of Topeka, Kan. ended an overtime pay practice that affected management positions within the fire department.
According to local news source WIBW, Topeka had allowed overtime pay for 24-hour supervisory positions since 2001. The city's unique overtime pay strategy addressed salary compression problems when workers left union positions and advanced to the management and executive pay system. Salary compression is a situation in which higher ranked workers earn the same or less than lower positions.
In 2012, the 11 fire department workers employed as battalion chiefs and shift commanders earned $145,000 in overtime pay.
City Manager Jim Colson designated these positions as exempt, meaning overtime would no longer be compensable under the Fair Labor Standards Act. The overtime issue was reported in August, but Colson extended the old system for three months to give employees a chance to adjust to the income loss, reported The Topeka Capital-Journal.
Following a comprehensive review of the department's pay structure, the city will overhaul the compensation arrangement without the help of overtime pay.
Under FLSA, certain managers are exempt from overtime pay. However, to avoid possible disputes, it is still important to maintain proper employee time records using attendance tracking software for all employees.
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.