As we covered in last month’s newsletter, there is an ongoing issue for some of our “FLSA exempt” members who worked approved overtime that occurred in pay periods that also have a holiday. The same situation could also occur with other types of benefitted time like sick and vacation leaves, but we’re primarily focused on holidays because employees don’t have a choice whether they will take them or not. To recap, some employees are being asked to pay back “overpayments” to the state for the additional hours they worked even though they were hours where our members traded their time for compensation; those are classic “hours worked”.
It appears that the state is asking for one of two things: either the state is asking for employees to pay back their salaries for hours actually worked (the approved overtime); or the state is asking employees to pay back their holiday hours. Either of these groups of compensation are protected by the MGEC contract.
Consistent with our advice from last month, we are advising our members to reply to any ask for “repayment” to challenge that there ever was an overpayment. We do not recommend repaying anything. This is a suggested response:
“I do not agree that I was overpaid, and I do not agree to any reduction in my paycheck. If you make an unauthorized reduction of my pay, you will be in violation of Minn. Stat. § 181.79 and will be liable to me for the amount wrongfully deducted plus punitive damages equal to twice the amount deducted.”
Even as of now, MGEC has not heard from anyone at MnDOT, other agencies, or MMB about this issue to understand the basis of their claim. We have heard from union members in other states whose agencies have made similar claims.
If your payroll people reach out to you, let us know so we can advise you further.