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
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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