40 Plaintiffs Allege City of San Diego Miscalculated Wage Rates, Owes OT

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Forty plaintiffs have put their names on a proposed class action lawsuit that alleges the City of San Diego miscalculated the regular hourly pay rates of participants in the city’s Flexible Benefits Plan by failing to account for left over “flex dollars” as eligible renumeration, i.e. compensation for work performed for the city’s benefit, and thusly owes unpaid overtime wages. 

The complaint says that the city notified its employees by email on June 30, 2017 that, effective July 1, San Diego “will include in an employee’s FLSA overtime calculations the cash value of any flexible benefit credits that they did not use to pay for health, dental, vision, or life insurance” in accordance with recent changes to federal law. Those changes, the case notes, can be traced back to Flores v. City of San Gabriel, wherein it was mandated that flex-spending dollars are considered “renumeration” for the purposes of calculating an employee’s regular rate of pay and, therefore, hourly overtime rate. From the lawsuit:

The full complaint can be read below.