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Some ASG employees may have to return overtime pay

Some government employees who received overtime payment under the agreement between ASG and the U.S. Department of Labor were not entitled to such payments, according to DHR Director Sonny Thompson, and the Department of Human Resources has not yet reached a decision on whether to go back and collect this money from the affected employees.

 

This was revealed by the DHR Director during his power point presentation at Tuesday's cabinet meeting, when he was talking about hiring practices and overtime issues—such as those who are exempt from being paid overtime.

 

USDOL reported in August this year that ASG had paid $916,093 in back wages to 256 employees, most of them police officers with the Department of Public Safety. According to USDOL, investigators had found that some employees' overtime hours were paid at a straight-time rate instead of at one and one-half times their regular rates of pay, as required by the federal Fair Labor Standards Act.

 

During the cabinet meeting, Thompson shared information on the “Three-Test for exemption” to determine those employees who are not entitled to overtime.

 

The first test eliminates individuals with a “minimum salary level” of $380 per week or above.

 

It used to be at $455 a week, but “it has been reduced by the federal [government] because of our minimum wage,” he said and stressed that anyone “who makes $380 or more a week is considered exempt and... that means they are not eligible for overtime.”

 

(Minimum wage for government employees has increased since 2007 due to federal law,  and currently stands at $4.41 per hour, with the next hike of 50 cents per hour set for 2015)

 

The second test eliminates those paid on a “salary basis” or individuals with a “fixed salary” and whose compensation cannot be reduced because of variations in the quality or quantity of work performed.

 

These employees, explained Thompson, must be paid the full salary for any week in which the employee performs any work.

 

The third test falls in the level of management, whose primary duty is management of the enterprise or directing the work of two or more employees with the authority to hire or fire employees, or whose suggestions and recommendations as to hiring, advancement, promotion or other change of status of other employees are given particular weight.

 

According to the DHR director, this third test is “where we have the problem” with those individuals who got paid overtime but who are considered exempt, “especially with DPS” — with some “employees who received $15,000, $18,000 or $20,000 for overtime for 2009 to 2011.”

 

He said it was found that there was a “misinterpretation” of the law in this case, therefore there were many people who received checks who should not have received them; however he didn’t reveal the total number of people in question.

 

Thompson said when they spoke with the federal officials from USDOL, who arrived last week on island — about this issue of individuals getting checks which they were not entitled to— the federal response was “the case [is] closed”.

 

Thompson recalled his reaction was, “No, it isn’t.”

 

“Not in our mind — because it is our dollars, not federal dollars.”

 

He told directors that the  whole idea for the visit from the feds is because they “want to make sure that you and I are in compliance.”

 

And, “if that was federal money, I can assure you, they will come after you until the day you die — you’re going to pay for it,” he informed cabinet members. “So what works for them, works for us. It behooves us to be in compliance.”

 

Asked later if DHR will seek reimbursement from those individuals paid under the USDOL case who were not entitled to overtime, Thompson said the matter is under review at this time and no decision has been made.