07-27-2020 Council Work Session Packet

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CITY OF ORONO MEMORANDUM DATE: July 27, 2020 TO: Mayor Walsh, City Council FROM: Dustin Rief, City Administrator RE: FLSA Audit Update Background: In January of 2020, the City was notified by the United States Department of Labor that they wanted to audit the time sheets for the Police Department. Staff met with the investigator shortly after notification and have subsequently provided payroll data for evaluation for a period including all of 2018 and 2019. The data was reviewed for accuracy and compliance of the federal law. After review of the records the Department of Labor (DOL) noted some discrepancies related to record keeping and paying out overtime when an employee reaches 171 hours in a 28 day period. The DOL’s response is below. Dustin, Thank you for your time this morning. I thought it might be helpful to provide a list of some of the considerations that should be made in computing back wages. 1. We discussed updating the two year period to 7/16/2018 – 7/12/2020 2. For back wage purposes, a biweekly work period will be used and any hours over 86 will be considered overtime hours 3. Clarifying hours worked on time sheets: a. The 10-hour shifts recorded on time records should be counted as 10.25 hours when computing weekly/biweekly total hours worked b. Court hours – distinguish between court hours worked vs court stand-by (not hours worked) c. Comp hours – clarification as to the total hours worked these hours represent and how many are at straight time and how many at time and a half (only comp hours at time and a half can be credited toward overtime due) 4. Payroll Information a. Rate of pay b. Overtime hours paid (both regular overtime and 119 overtime) c. Holiday premium hours paid at time and a half (not the Holiday pay at straight time) d. Comp hours accrued (This is to double check to see if the comp hours on time records were actually credited the same) 5. I’ve attached a sample computation sheet. I do NOT expect the time sheet be transcribed as it is shown (very time consuming). There should be a weekly total hours worked and bi-weekly total hours worked column however. It will also be helpful to include the comp hour columns as well. You do not need to use this template if you find an easier process. It does, however, give an example of the components needed to compute the back wages. I would like to see an example before all the computations are done in case there is any correction needed.