City employee gets raise in FLSA lawsuit settlement

The budget director of a small city in New Jersey recently settled a time and attendance lawsuit alleging violations of the Fair Labor Standards Act regarding claims of unpaid overtime.

The plaintiff stated that since being employed by the city, he has been compensated for overtime. However, an employee status change under FLSA guidelines designated his position as exempt even though he continued to put in extra work hours between September 2011 and January 2013, and argued that his position did not require him to oversee or hire anyone.

After suing for retroactive overtime pay in the amount of $25,752, the plaintiff and the city agreed instead on a pay raise to make up for the amount owed.

As a result, the plaintiff's base salary will increase by $15,000 to $111,000, which will also allow him to collect a bigger pension when he does retire from city service. The plaintiff also received a check for $20,307 as retroactive lump sum payment, since it was agreed that his raise should take effect on Jan. 1, 2013. The city is also responsible for paying the plaintiff's lawyer fees in the amount of $42,307.


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