(BCN) — Oakland spent almost $1.7 million on unauthorized time beyond regulation in two departments throughout a interval of a number of years resulting from a payroll system downside, based on a latest metropolis auditor’s report. From a minimum of January 2018 to Could 2024, Oakland overpaid 158 staff within the metropolis’s Division of Transportation and 368 staff in Public Works as a result of its payroll system was utilizing “a method for calculating overtime that differs from what the Fair Labor Standards Act requires,” based on Metropolis Auditor Michael Houston.
The Truthful Labor Requirements Act units federal necessities for minimal wage, time beyond regulation pay, document preserving and baby labor requirements in each the private and non-private sectors. Cities will pay greater than what the federal guidelines require, however Houston stated he discovered no proof that Oakland ever licensed such funds.
‘Loss of life Clock’ app makes use of AI to foretell when you’ll die
“This issue of excessive overtime pay warrants the city’s immediate attention because taxpayers have essentially been incurring significant costs that were never approved,” Houston stated. “I implore the City Administration to ensure that city employees are paid no more and no less than authoritative regulations and agreements require. I will watch closely how the City Administration works to rectify this issue.”
Spokespeople for Metropolis Administrator Jestin Johnson and Interim Mayor Kevin Jenkins did not instantly reply to requests for remark. The Oakland Finance Division oversees town’s Payroll Division, which is liable for payroll processing, however officers in these workplaces have been unable to clarify the overpayments or pinpoint precisely how lengthy they have been taking place, based on the report.
Officers within the metropolis’s Human Assets Administration Division and the Metropolis Lawyer’s Workplace have been equally baffled. Houston stated the overpayments are significantly troubling in mild of town’s ongoing and large funds shortfalls — estimated at $280 million over the subsequent two years — which have prompted metropolis leaders to look “under couch cushions for spare coins,” institute large-scale layoffs and considerably minimize providers.
He additionally famous that the issue may be a lot bigger and costlier than he was in a position to establish since he solely examined time beyond regulation spending in two departments. In his report, Houston makes quite a few suggestions, together with that metropolis officers conduct a evaluate of time beyond regulation formulation for all staff, undertake time beyond regulation formulation that do not exceed federal pointers and make these formulation publicly accessible, seek the advice of with the Metropolis Lawyer’s Workplace to establish methods to tackle previous funds and talk about the report’s findings at a public assembly.
Houston stated his workplace was alerted to the payroll downside as a result of somebody used the auditor’s nameless whistleblower hotline to report their suspicions in July of 2023.
“Without the tip, we may not have become aware of this issue that is significantly costing the city,” Houston stated.
Individuals can learn the total report right here.
Copyright © 2025 Bay Metropolis Information, Inc.
