Lump-sums pd as leave buybacks / OT pay

joyben

The 8th US Circuit Court of Appeals in Acton v City of Columbia affirmed a lower court's ruling that lump-sums paid to firefighters in exchange for blocks of their accrued but unused sick leave must be included in the regular rate used to calculate their overtime pay. Since this case was about government employees, can we take it that this ruling applies only to public/government employees, or should it apply to all employees when paying out accrued but unused leave (sick or vacation)?

HRCalico

Joyben, I don't have much help for you. I hate it when nobody replies, though. There was a post a while back that LarryC and I responded to regarding firefighters but I can't remember exactly what the context was and I can't find the post this morning to see if it even applies. Larry, do you remember?

E Wart

I would think that a lot of this would depend upon how this is presented and what it is called. Since it wouldn't be time actually worked, I wouldn't think you would have to pay "time and a half" for this block of time. However, it may be handled like a "bonus" which can be considered in rate calculations. (Unless it is totally discretionary and/or employee is exempt.)
E Wart