03-21-2009, 05:41 PM
As most of you are aware, members of the Executive Board have been approaching you to sign a consent form in regards to a class action lawsuit that the Lodge is undertaking in regards to a Federal Labor Standards Act(FLSA) overtime violation.
To give you some backround, the Executive Board was approaced by a member 3 weeks ago who inquired why his overtime rate on his most recent paycheck had increased by approxiamtely $2.00 an hour.
When this member reviewed his old paychecks, prior to the new ADP System, he discovered that on the old payroll system, his overtime was computed by simply mulitplying his base pay times 1.5 (eg: Base Pay = $36.39/Overtime = $54.58)
When we inquired into this with Payroll, they explained that the old payroll system was not computing overtime in compliance with FLSA law to include Longevity Pay, Shift Differential, Assignement Pay and Salary Incventive (The FLSA states that all these are to be broken down into a hourly wage and added to the base overtime rate). This particualr portion of the FLSA (Wage Augment Section) has been in effect since 1985. This new base overtime rate is then applied to overtime, holiday overtime, court overtime, standby, hurricane overtime, etc.
In consulting with the Lodge attorney, we feel it is in the best interest of the lodge that all members sign the consent forms and be included in the lawsuit. Unfortunately, because each members computation will be different, this is necessary.
The Lodge has been in contact with the City who is attempting and compiling each individual members actually supplemental overtime rate and how much actually overtime you worked. Some members have questioned why go the "lawsuit" route. To answer that it is to ensure each member gets what is rightly owed to them and it is 100% correct. When the city gets served next week, they have the option of correctly paying back every member and the the suit will be dismissed which we fully expect that they will do by our past conversations with them.
Even though the FLSA law has been in effect since 1985, there is a provision that he city has to only go back 2 years and pay back double the amount owed to the individual member.
I hope that this answers alot of you questions and please do not hesitate to contact anyone on the Executive Board with further questions.
To give you some backround, the Executive Board was approaced by a member 3 weeks ago who inquired why his overtime rate on his most recent paycheck had increased by approxiamtely $2.00 an hour.
When this member reviewed his old paychecks, prior to the new ADP System, he discovered that on the old payroll system, his overtime was computed by simply mulitplying his base pay times 1.5 (eg: Base Pay = $36.39/Overtime = $54.58)
When we inquired into this with Payroll, they explained that the old payroll system was not computing overtime in compliance with FLSA law to include Longevity Pay, Shift Differential, Assignement Pay and Salary Incventive (The FLSA states that all these are to be broken down into a hourly wage and added to the base overtime rate). This particualr portion of the FLSA (Wage Augment Section) has been in effect since 1985. This new base overtime rate is then applied to overtime, holiday overtime, court overtime, standby, hurricane overtime, etc.
In consulting with the Lodge attorney, we feel it is in the best interest of the lodge that all members sign the consent forms and be included in the lawsuit. Unfortunately, because each members computation will be different, this is necessary.
The Lodge has been in contact with the City who is attempting and compiling each individual members actually supplemental overtime rate and how much actually overtime you worked. Some members have questioned why go the "lawsuit" route. To answer that it is to ensure each member gets what is rightly owed to them and it is 100% correct. When the city gets served next week, they have the option of correctly paying back every member and the the suit will be dismissed which we fully expect that they will do by our past conversations with them.
Even though the FLSA law has been in effect since 1985, there is a provision that he city has to only go back 2 years and pay back double the amount owed to the individual member.
I hope that this answers alot of you questions and please do not hesitate to contact anyone on the Executive Board with further questions.