Page 33 - CPAAC_Fall2016
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PAGE 19 9/27/2016
PAGE 20Legal Update
Underpayment of Wages – Flores v. City of San Gabriel, 824
F.3d 890 (9th Cir. 2016)
FACTS
• City made cash payments to police officer employees in lieu of health
benefits.
• Officers claimed that these cash payments should have been included in
determining their “regular rate” that was used to compensate them for
overtime they worked.
• City argued that the cash-in-lieu payments were not payments made as
compensation for hours worked and were not tied to the amount of work
an employee performed for the City.
Legal Update
Underpayment of Wages – Flores v. City of San Gabriel, 824 F.3d 890 (9th
Cir. 2016)
Holding
• The Ninth Circuit found that the payments were “compensation for
work” and therefore should have been considered in determining
the employee’s “regular rate” of pay for purposes of calculating
the employee’s FLSA overtime rate.
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