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HomeMy WebLinkAboutOrdinance No. 2623-2012c,ryaf KENAI, ALASKA Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2623 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 23.25.060, "OVERTIME," TO ELIMINATE THE PAYMENT OF OVERTIME IN EXCESS OF FAIR LABOR STANDARDS ACT (FLSA) RATES TO TEMPORARY EMPLOYEES AND MAKING TECHNICAL CORRECTIONS. WHEREAS, the City hires temporary employees to perform work during peak periods (usually driven by seasonal demands) and these employees often work non - standard work schedules to accomplish that work; and, WHEREAS, the imposition of the Personal Use Fishery on the City has created a new demand for the payment of overtime at premium rates, rate in excess of FLSA rates, to temporary employees; and, WHEREAS, under the City Code, temporary employees are ineligible for employee benefits and holiday pay; and, WHEREAS, permanent City employees are paid a premium for overtime hours, above that required by the federal FLSA law, when the employee works on Sundays and holidays but the basis for that policy does not apply to temporary employees who do not work standard schedules or who work only for a short period of time for the City; and, WHEREAS, there are some inconsistencies in the City Code regarding the pay practices of the City with respect to temporary employees and it is in the best interest of the City to provide clarification in the Code of the City's overtime compensation practices with respect to temporary employees; and, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: This is a Code ordinance. Section 2. Amendment of Section 23.25.060 of the Kenai Municipal Code: The Kenai Municipal Code, Section 23.25.060, Overtime, is hereby amended as follows: 23.25.060 Overtime. (a) Department heads and supervisors shall assign to each employee regular work duties and responsibilities which can normally be accomplished within the established work day and work week. New Text Underlined' [DELETED TEXT BRACKETED] Ordinance No. 2623 -2012 Page 2 of 4 (b) When employees are required to work overtime, department heads shall authorize compensatory time off or overtime pay. Determination to grant overtime pay or compensatory time off shall rest with the department head, City Manager, or acting department heads, who shall give due consideration to desires of the employee, to budgetary controls, and to the provisions of subsection (c) of this section. Rates for overtime (in addition to regular compensation based upon salary schedules) shall be[:] based upon the employee's regular rate of pay as follows: (1) General Government Employees (excluding [S]sewer [T]treatment [P]plant and temporary employees). Regular Pay Times Regular Work 1 1/2 Saturday 1 1/2 Sunday 2 Holiday 2 1/2 (2) Temporary Employees: Regular Pay Times Regular Work 1 1/2 Saturday 1 1/2 Sunday 1 1/2 Holiday 1 1/2 (3) General [G]government and temporary [E]employees must be in a paid status for forty (40) hours in the work week before overtime compensation [may] will be paid. ([3]4) Public Safety and Sewer Treatment Plant Employees: Regular Pay Times Regular Work Day 1 1/2 Saturday [see KMC 23.30.050 (b) and (c)] 1 1/2 Sunday [see KMC 23.30.050 (b) and (c)] 2 Holiday [see KMC 23.40.020 (c) for treatment] ([4]5) [BEFORE OVERTIME MAY BE PAID,] Public [S]safety and [ S]sewer [T]treatment [P]plant employees must be in a paid status for their normal work week, as follows, before overtime compensation will be paid: Police 40 hours Fire 56 hours Communications 40 hours Sewer Treatment Plant 40 hours New Text Underlined. [DELETED TEXT BRACKETED] Ordinance No. 2623 -2012 Page 3 of 4 However, overtime may be paid as required by the Fair Labor Standards Act, recognizing that an employee's salary is compensation for the nomnal shifts specified in this Title. (c) Compensatory time accumulation shall not exceed [EIGHT (8) HOURS] the total number of hours equal to one regular shift of the employee. Once this maximum accumulation has been reached, all overtime compensation earned by the employee shall automatically be paid in cash. (d) Supervisory and professional positions of the classified and exempt services considered to be exempt from the provisions of the Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The individuals in these positions are expected to work as many hours as the responsibilities of their positions require. As a result, individuals in these positions shall not be paid overtime or allowed to accrue compensatory time (e) The Finance Department shall ask employees to submit monthly time sheets on a date near enough to the end of the month to allow for processing of pay checks by the last pay day of the month. Overtime appearing on such time sheets shall be paid on the last pay day of the month. Overtime worked between the submission of time sheets and the end of the month shall be entered on the following month's time sheet and paid on the last pay day of that month. [(f) SEASONAL PARKS AND RECREATION EMPLOYEES THAT WORK FOR SEVEN (7) MONTHS OR LESS IN THE CALENDAR YEAR, AND ARE EXEMPT FROM THE OVERTIME REQUIREMENTS OF THE FAIR LABOR STANDARDS ACT[S], ARE EXEMPTED FROM THE ABOVE OVERTIME AND MAXIMUM COMPENSATORY TIME ACCUMULATION REQUIREMENTS.] Section 3. Severability: If any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: Pursuant to KMC 1.15.070(f), this ordinance shall take effect one month after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of April, 2012. New Text Underlined [DELETED TEXT BRACKETED Ordinance No. 2623 -2012 Page 4 of 4 ATTEST: PAT PORTER, MAYOR Sandra Modigh, City Clerk Approved by Finance: Introduced: April 4, 2012 Adopted: April 18, 2012 Effective: May 18, 2012 New Text Underlined. [DELETED TEXT BRACKETED] 1 IL ° city or, / KENAI, ALASKA "Vt aye with a Past, Ci y with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 -283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: March 28. 2012 Re: Ordinance 2623 -2012 The purpose of Ordinance 2617 -2012 is to eliminate the requirement to pay temporary employees at overtime rates in excess of that required by the Fair Labor Standards Act (FLSA). FLSA requires overtime to be paid to employees who work more than forty (40) hours per week at a rate of 11/2 times their normal rate of pay. Payment of overtime at rates at 2 and 21/2 times the normal hourly rate are not required by FLSA. Prior to the imposition of the Personal Use Fishery on the City, overtime for temporary employees at more than FLSA required levels seldom occurred. Operations of the fishery seven days a week and even twenty -four hours a day has required payment of overtime at higher than time and one -half to employees working the fishery. KMC 23.25.060 (f) attempted to eliminate all overtime for temporary Parks and Recreation employees. The City's Parks and Recreation employees have been determined to not qualify for this exemption under the FLSA and have thus been paid overtime under the provision of KMC 23.25.060 including at rates of 2 and 21/2 times their normal hourly rate. This Ordinance will limit overtime to all temporary employees to the FLSA required rate of 11/2 times the normal rate of pay for all hours over 40 hours per week. The change included in failed Ordinance 2617 -2012 to eliminate the payment of overtime to permanent employees at a rate of three and one -half times their hourly rate when working on a City holiday has been eliminated from this Ordinance.