Advisory Concerning Overtime Payments to Ineligible Employees
Summary
In November 2025, OIG advised the Departments of Human Resources (DHR) and Finance (DOF) that it had determined some City employees have received overtime pay to which they may not have been entitled. OIG’s determination was based on the employees’ Fair Labor Standards Act (FLSA) status, as determined by DHR.
Executive Summary
OIG analyzed a DHR-provided list of City titles and their relevant FLSA statuses alongside relevant collective bargaining agreements and determined that, from 2020 through 2024, the City paid $26.5 million in overtime to potentially ineligible employees.
In its response to OIG’s advisory, DHR and DOF acknowledged the need for “additional steps” to prevent overtime payments to ineligible employees. They identified corrective actions in pursuit of that goal and committed to collaborate with each other in order “to implement measures to ensure the City is not paying overtime to ineligible employees.”
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