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HomeMy WebLinkAbout1998-10-14 98-403 ORDERODNCIL ACTION Item No 98-403 Date: 10.1448 Item/Subject Order, Amending City of Bangor Persomel Rules and Regolafiom Responsible Department Executive Commentary: Recent Circuit Court and US Supreme Court decisions have focused attention on Fair Labor Standards Act (FESA) exempt or salated positions. Specifically, in order for salaried positions and classifications in remain exempt from overtime provisions, employees in those positions cannot be subject to disciplinary action winch causes areduction in pay for less flume one work week, unless for a safety violation ofvmjor significance. This proposed amendment would clarify the City's Personnel Rules and Regulations and would bring the City's disciplinary policy into cornpBwce with Nese most recent Court decisions. This amendment only impacts Nose 30 to 35 exempt positions in Ne City's Position Classification Plan. Manager's Connemara": zw"" „rtry, 4 � ' Il�lL City Manager Associated Wormatlon: Order, Memo doled 10-1-98 Budget Approval Finance Director Legal ApprovN: /t,t. city so Introduced for Ct*AN — x Passage —Find Reading Par—of— Relearned A ipred to Cir Crowley October 16, 1118 CITY OF BANGOR (TITLE.) (Pr4r, ............. Amending City of Bangor Revised Personnel Rules and Regulations By city Car efts. City ofBovenr. ORDERED, TROT the City of Bangor Revised Personnel Rules and Regulations are hereby amended by adding the following to Section 6.8, Disciplinary Actions 6.8 No employee in a Fair Labor Standards Act(FLSA) exempt position or clan tifcation shall have InAer pay reduced for aperiod of less than one (1) work week for any do uipl airy action offer than that defined by the Department of Labor, mclading but not limited to a violation of safety nde of major significance. All other provisions ofSecfion 6.8 shall remain in effect. IN CITY COUNCIL October 14, 1998 Passed 98-403 ^, OR tER LI CLERK tfV4^` �y, Title• AmendingCity of Bangor Rivised Personnel Rules and Regulations ................................. a®�eatn MEMORANDUM 98-403 C 2 To: Municipal Operations Committee From: Robert W. Ferrer, Assistant City Manager Subject Amendment to City of Bangor Perousel Rules andftegileioos Date: October 1, 1998 When the Revised City of Bangor Personnel Rules and Regulations were adopted by the City Council in March 1997, we indicated that, as necessary, amendments would be proposed to keep the document current, parideparly with respect W changing slide and federal regulations. Recent Circuit Court and US Supreme Court decisions regarding certain compact of exempt employees under the Pair Labor StaMaMs Act (FLSA) make it appropriate to revise our Rules and Regulations. Specifically, FLSA exempt or "salaried" employees must meet aMe part test in order to be exempt (i.e. rat be required to receive overtime pay) from the Fair Labor Standards Act: a duties test and a salary basis test. Under the salary basis rest, in order in maintain an exempt classification, an employee carver be subject to a reduction in pay of less than one week for disciplivaryreasons,othertbantheviolafionofasafetymleofmajorsignificance. Accordiugto uperpremtions of these Court decisions, should the employer impose less than a one week reduction in pay (for example a suspension without pay or a reduction in pay), Nen the classification which the employee holds becomes anon -exempt position, subject to FLSA provisions including the payment of overtones for hours worked in excess of 40 in a work week. Certain Court decisions have indicated that merely having a policy which allowed for the reduction in pay of exempt classifications for las than one week for non -safety related reasons, could make those classifications non-exempt More recent Court decismw clarified the interpretation by t d'mg Nat Nene must be a "significant likelihood" that such Improper deductions could occur or the "such improper deductions were actually made." Through ail of the various Circuit Court decisions, one simple remedy emerged to overcome flus potential problem. The remedy was for municipalities re amend their existing personnel policies, rules or regulations to indicate the following: No pro -� I Is d d a 10;f CAl ^•Tr •it 1 ifiratinn eM1w i have inu/ier paK db � n pm J g Aalation Of afpJy n•Ir of ma'n��ifican I have discussed this matter with the City's Labor act personnel Attorney Thom Johnston, who concurs win my recommendation that this language be added as an amendment to the City's Personnel Rules and Regulations. This language will clarify the City's policy with respect to discipline for FLSA exempt employees and will ensure that the City does not unintentionally tum an exempt position into a non-exempt position through the application of discipline. Bath Thom and I recommend that the City adopt this amendment which will strengthen the City's position should a future claim be filed regarding violation of the FLSA with respect to overtime pay. RWF/j