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Home My WebLink AboutMINUTES - 10191993 - 1.73 1.70 through 1.73 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on October 19, 1993, by the following vote: AYES: Supervisors Powers, Smith*, Bishop, McPeak and Torlakson NOES: None ABSENT: Supervisor Smith* on Item 1.70 ABSTAIN: None SUBJECT: i Item No. 1.70 LETTER dated October 1, 1993, from Ronald Leone, Chairman of the Board of Directors, Mt. Diablo Medical Center Board of Directors, P.O. Box 4110, Concord 94520, requesting that the Board not proceed with the construction of the replacement County Hospital during their 60-day period of negotiation regarding Mt. Diablo Hospital District contracting for inpatient and emergency room services. (See above for vote) ***REFERRED TO HEALTH SERVICES DIRECTOR 1.71 LETTER dated October 1, 1993, from Walter Foskett, Chairman, Citizens Advisory Committee, County Services Area R-7, P.O. Box 1062, Alamo 94507, requesting the Board initiate a study to update the boundaries of CSA R7-A regarding paying park taxes. ***REFERRED TO PUBLIC WORKS DIRECTOR 1.72 LETTER dated October 5, 1993 from D. Imman, Homeless Person, Concord 94520, commenting on the County's homeless shelter and requesting the Board to adopt a resolution to expedite the transition to Section 8 or alternative low cost housing. ***REFERRED TO EXECUTIVE DIRECTOR, CONTRA COSTA COUNTY HOUSING AUTHORITY 1.73/LETTER dated October 4, 1993, from Governor Pete Wilson, Governor of California, State Capitol, Sacramento 95814 , asking the Board to contact Labor Secretary Reich and request that the U.S. Department of Labor replace its current Fair Labor Standards Act overtime pay regulations with an alternative approach which would more appropriately address the circumstances of public sector employment. ***REFERRED TO COUNTY ADMINISTRATOR IT IS BY THE BOARD ORDERED that the actions as referenced (***) are APPROVED. cc: Correspondents County Administrator Health Services Director Housing Authority Executive Director Public Works Director I herehy certify that this Is a true and correct copy pt an action taken and enteibd on the minutes of the Board of Supervisor$on the date shown. /y ATTESTED: �the "fPHIL BATCHELOR,Clerk ard of Supervisors and County Administrator Deputy 1, 73 Qcr 9 GOVERNOR PETE WILSON RECEIVE. J October 4, 1993 10CT I I Im CLERK BOARD OF SUPERVISORS CONTRA COSTA Co. The Honorable Thomas Torlakson Chair Contra Costa. County Board of Supervisors 300 East Leland Avenue, Suite 100 Pittsburg, California 94565 Dear Supervisor Torlakson: At its annual meeting this summer, the National Governors' Association adopted a resolution that I put forward regarding the application of federal Fair Labor Standard s,. 'Act (FLSA) overtime pay .regulations to' public'.employers. Please =find-6riclosed a copy of this' resolution•. - Fe'der-al'-'Court interpretations regarding Ithe - FLSA :'overtime pay regulations have resulted in the accrual of dramatic fiscal liability on the part of public employers. Federal courts already have awarded huge back overtime pay judgements against state, county, and city governments . Cases brought against the State of California have included plaintiffs earning annual salaries of between $40, 000 and $90, 000, a category which represents approximately 35 percent of State employees . Many local jurisdictions here in California are now in litigation over this overtime pay issue and could be subject to dramatic fiscal liability. Potential litigation and fiscal liability threatens all local governments . The State already has settled two cases at a price tag of roughly $5 million, while a current pending case could cost the State $100 million. The court rulings are denying public employers the ability to exempt their highly paid professional employees from the FLSA overtime` pay requirement, despite the fact that the Act provides for just such an exemption. In effect, the courts are telling state and local .governments that they cannot utilize personnel practices -which hold their employees accountable for time spent . on. the' job�. _As public officials -we know such a- concept- is antithetical to the idea of holding governments accountable for the expenditure of public funds . STATE CAPITOL 0 SACRAMENTO, CALIFORNIA 95814 • (916) 445-2841 r Page Two In a time of tightly constrained public budgets, state and local governments should not be forced to pay huge financial windfalls to highly paid public executives and administrators simply because a federal regulation is being inappropriately applied to public employers . The federal government must take action to resolve this problem of critical concern to state and local governments . I ask that you contact Labor Secretary Reich to request that the U.S . Department of Labor replace its current FLSA overtime pay r_ecri lar.i on.s with an altern?tl:Te approach which more appropriately addresses the circumstances of public sector employment. In addition, I ask that you contact our Senators and your congressional representative and ask that they pass legislation eliminating retroactively the fiscal liability which is now accruing to public sector employers as a result of on- going FLSA litigation. I hope that you will join with me in urging the federal government to resolve this issue of such critical importance to public sector employers in California. Please feel free to contact my Director of Intergovernmental Affairs, Carol Whiteside, at (916) 323-5446, if you have any questions . Thank you for your consideration of my request. I look forward to hearing of your initiatives . Sincerely, PETE WILSON Enclosure i HR-8. FAIR LABOR STANDARDS ACT OVERTIME PAY 8.1 PREAMBLE RECENT FEDERAL COURT INTERPRETATIONS REGARDING THE APPLICATION- OF THE FAIR LABOR STANDARDS ACT (FLSA) REGULATIONS TO PUBLIC EMPLOYERS HAVE RAISED SEVERAL ISSUES OF GREAT CONCERN TO GOVERNORS. THESE COURT DECISIONS HAVE RESULTED IN HUGE AWARDS OF BACK OVERTIME PAY TO EXECUTIVE, PROFESSIONAL, AND ADMINISTRATIVE PUBLIC EMPLOYEES EARNING ANNUAL SALARIES OF BETWEEN $40,000 AND $90,000. DOZENS OF SUITS AGAINST STATE AND LOCAL GOVERNMENTS HAVE BEEN DECIDED ACROSS THE NATION AND SCORES MORE ARE PENDING. THE EXISTING LIABILITY IS IN THE HUNDREDS OF MII.LIONS OF DOLLARS, WHILE THE POTENTIAL LIABILITY FOR STATES AND LOCALITIES COULD MEAN FISCAL DISASTER. THE GOVERNORS BELIEVE THAT UNDER FLSA AND THE CORRESPONDING REGULATIONS, EXECUTIVE, PROFESSIONAL, AND ADMINISTRATIVE EMPLOYEES WERE INTENDED TO BE EXEMPT FROM THE TIME-AND-A-HALF OVERTIME PAY REQUIREMENTS. HOWEVER, THESE REGULATIONS WERE DRAFTED ALMOST FIFTY YEARS AGO WITH MANUFACTURING WORKERS IN MIND, LONG BEFORE FLSA APPLIED TO PUBLIC SECTOR EMPLOYEES. THESE REGULATIONS WERE NOT REVISED UPON FLSA'S APPLICATION TO STATE AND LOCAL GOVERNMENTS IN 1985, EVEN THOUGH THE U.S. DEPARTMENT OF LABOR ACKNOWLEDGED THE NEED FOR SUCH REVISION. THE APPLICATION OF THESE FLSA REGULATIONS TO PUBLIC SECTOR EMPLOYERS IS WHOLLY INAPPROPRIATE AND PLACES AN ENTIRELY UNANTICIPATED AND UNACCEPTABLE BURDEN ON STATE AND LOCAL GOVERNMENTS AT A TIME WHEN THEY CAN LEAST AFFORD IT. THE COURTS HAVE RULED THAT ANY FORM OF ACCOUNTABILITY FOR TIME SPENT ON THE JOB IS A VIOLATION OF FLSA REGULATIONS AND THEREFORE PREVENTS ANY EXEMPTION FROM THE ACT'S OVERTIME PAY REQUIREMENTS. THIS NOTION IS ANTITHETICAL TO THE NEED FOR GOVERNMENT TO BE ACCOUNTABLE TO ITS TAXPAYERS FOR THE EXPENDITURE OF PUBLIC FUNDS. -25- r 82 RECOMMENDATIONS THE GOVERNORS URGE THE FEDERAL GOVERNMENT TO ACT IMMEDIATELY TO RESOLVE THE CRISIS THAT HAS ARISEN BECAUSE OF THE MISAPPLICATION OF FLSA REGULATIONS TO PUBLIC SECTOR EMPLOYERS. THE GOVERNORS BELIEVE THAT THE FEDERAL GOVERNMENT SHOULD TAKE THE FOLLOWING STEPS. • THE DEPARTMENT OF LABOR SHOULD, WITHOUT DELAY, ABOLISH THE "SALARY BASIS" REGULATION AND REPLACE IT WITH AN ALTERNATIVE APPROACH THAT MORE EFFECTIVELY ADDRESSES PUBLIC SECTOR EMPLOYMENT. THE DEPARTMENT ALSO SHOULD REVISE THE "DUTIES TEST" REGULATIONS. • CONGRESS SHOULD IMMEDIATELY PASS LEGISLATION THAT WOULD ELIMINATE RETROACTIVELY THE LIABILITY THAT HAS THUS FAR ACCRUED TO STATE AND LOCAL GOVERNMENTS AS A RESULT OF FLSA REGULATIONS. Time limited (effective August 1993-August 1995). -26- DATE: /G-/ i- REguEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressg Board; NAME: -- l PHONE: ADDRESS: CITY: !� I am speaking formyself OR organization: Che One: (NAME OF ORGANIZATION) I wish to speak on Agenda Item It /r My comments will be: general for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: REgum- TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressin he Board. NAME: �, PHONE: � `7 ADDRESS: CITY: L I am speaking formyself OR organization: A� ,z (NAME OF ORCANIZ-V ION) Check one: I wish to speak on Agenda Item # My comments will be: general for against . I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider.