OCTOBER 11, 2005

Management Overtime Calculation Not Correct

WPEA/UFCW 365 filed a group grievance regarding violation of the overtime provisions of the General Government Master Agreement. Specifically, the grievance cites violation of the rate of pay for overtime work. The Agreement states, in Article 7: Overtime "the overtime rate will be one and one-half of an employee’s regular rate of pay." And, Article 38: Compensation sets the regular rate of pay for each range and step.

After July 1, 2005, the employer continued to calculate the overtime rate for each employee by dividing the number of hours available to work in the month into the monthly salary, thereby achieving an hourly rate of pay for that month. The "regular" rate of pay would change from month to month depending on the number of hours available to work. However, the Agreement sets an hourly rate of pay for each range and step.

EXAMPLE:
Joe is paid at range 35 step K which is $2,844 per month and in August he works 8 hours of overtime. There are 184 working hours in August: $2,844 divided by 184 = $15.46/hour; $15.46 x 8 hours = $123.65 extra pay

But in February Joe works 8 hours of overtime. There are 160 working hours in February: $2,844 divided by 160 = $17.78/hour; $17.78 x 8 hours = $142.20 extra pay

If you look at the Salary Schedule in the Master Agreement, Joe’s contractual hourly rate of pay is $16.34. So it doesn’t matter if he works overtime in August or February, its always the same hourly rate.

The State’s contention is that the manner in which overtime rate of pay is calculated is set by law. However, the statute that they are relying on states:

"The office of financial management shall develop the necessary policies and operating procedures to assure that all remuneration for services rendered including basic salary, shift differential, standby pay, overtime, penalty pay, salary dues based on contractual agreements and special pay provisions, as provided for by law, Washington personnel resources board rules, agency policy or rule, or contract shall be available to the employee on the designated pay date." (RCW 42.16.010)

WPEA contends that the contract prevails on how overtime rate of pay is set and that the law specifically acknowledges this.

The parties were not able to resolve this matter at the pre-arbitration review step of the grievance procedure and WPEA/UFCW 365 has filed for arbitration with the American Arbitration Association in accordance with the Master Agreement. Check back for updates on this issue.