HomeMy WebLinkAboutAgenda - 11-15-2004-e1Overtime Costs Report
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In conjunction with the Board's consideration of the recommended budget for 2004 -05,
the Board requested and received information on overtime expenditures. During the
Board's discussion of new position requests, the Board asked staff to provide a report
later in the year as to overtime costs, including needs /issues leading to the overtime,
how overtime is justified and approved, how costs for overtime compare to other
approaches to addressing staffing needs and the like. This report provides the
requested information.
Overtime Pay
As an employer, Orange County is covered by the requirements of the Federal Fair
Labor Standards Act (FLSA). Among other things, FLSA requires that the County
designate its employees as "non- exempt" or "exempt" and that any employee
designated as non - exempt receive compensation at time and a half his or her regular
rate for hours worked over 40 in the workweek, [Note: Under the FLSA 7(k) provision
applicable to law enforcement and certain emergency medical positions, the County
may calculate overtime on the basis of hours worked in a 28 day period for these
employees.]
Under special provisions for State and local government, FLSA allows the time and a
half compensation for a non- exempt employee to be provided either as pay or time off.
County policy provides that the compensation is as time off except that:
• If the time off is not taken within 30 days of the date earned, it is paid, or
• If the department head determines that it will not be possible to give the time off
within the 30 day period, the department may submit payment for the overtime,
Overtime Approvals
• In consultation with the department head, Personnel designates which positions are
non - exempt or exempt under FLSA.
• Overtime work by a non- exempt employee requires the advance approval of the
employee's supervisor and /or department head.
• Overtime pay requires the department head's approval. The department head is
responsible for assuring that funds are available,
• Any request for overtime pay is submitted to the Personnel Department along with
the completed employee time record documenting the overtime hours worked.
Budget for Overtime
Each year the department head recommends as part of his or her budget request any
budget for overtime. The Budget Office reviews the department request and it also is
reviewed in the Manager's budget process. The Manager's Recommended Budget
-2-
includes the amount recommended for overtime and the final amount is included in the
adopted budget.
Beyond the approved budget for overtime, the department may use lapsed salaries as
generated by position vacancies in the department, Under the hiring delays in place for
2004 -05, such funds may only be used with the advance approval of the Budget Office.
Non - Exempt Staffing
Attachment 1 shows the number of wage hour exempt and non - exempt permanent
employees by department, major function and total. Attachment 2 shows this in chart
form. The numbers by major function are summarized below:
Function
Non - Exempt
Exempt
Amount
I Percent
Amount
Percent
Community & Environment
27
4.7
29
12.3
General Services
96
16.8
23
9.8
Governing & Management
16
2.8
22
9.4
Human Services
209
36.6
140
59.6
Public Safety
196
34,3
10
43
Solid Waste
27
4.7
11
43
Total
571
100
235
100
In summary, about 70 percent of non - exempt employees are in Human Services and
Public Safety. Public Safety has the largest proportion of its permanent staff who are
non - exempt as compared to exempt, followed next by General Services.
Overtime Expenditures
Attachment 3 shows the overtime expenditures for 2002 -03 and 2003 -04 by
department, by major function and total. These are the expenditures from all fund
sources (County general fund and others). The Attachment 4 chart compares
expenditures by major function for these two years.
The expenditures by major function and percent of total are below:
Function
2002 -03
2003 -04
Amount
Percent
Amount I
Percent
Community & Environment
$1,649
0.3
$13,480
2.1
General Services
$84,028
19.1
$102,087
15.7
Governing & Management
$2,392
0.5
$2,364
0.4
Human Services
$32,486
7 4
$42,879
6.6
Public Safety
$273,230
62,2
$468,081
71.5
-3-
Function
2002 -03
2003 -04
Amount
Percent
Amount
Percent
Solid Waste
$45,501
10.4
$25,700
19
Total
$439,287
100
$654,591
100
In summary, over 70 percent of the County's overtime expenditures in 2003 -04 are in
the area of Public Safety, Over 87 percent of the overtime expenditures are in the
areas of Public Safety and General Services combined.
Overtime Uses — Needs /Issues Leading to Overtime
Attachment 4 provides examples of the uses of overtime hours.
Reasons for Overtime Cost Increase in 2003 -04
In 2003 -04 as compared to 2002 -03, the expenditures for overtime increased by
$215.304,
Of this total increase, $109.252 is accounted for by the transfer of the Emergency
Transportation function from the Orange County Rescue Squad to the County
effective July 1, 2003. For 2002 -03, the overtime for emergency transportation was
a part of the total contract stipend given the Orange County Rescue Squad so these
expenditures were not reflected in the County 2002 -03 overtime expenditures.
Therefore the full transportation amount for 2003 -04 shows as an increase. In total
the amount expended for Emergency Transportation in 2003 -04 (overtime,
temporary wages, permanent salaries and so forth) was within the amount budgeted
for 2003 -04. The Emergency Transportation budget for 2003 -04 was $999,770 and
total expenditures were $947,292.
• The overtime departments with overtime cost increases in 2003 -04 as compared to
2002 -03 are listed below:
Department
Overtime
Cost Increase
Aging & OPT
$4,991
Animal Services
$27
Budget
$636
Commissioners' Office
$370
Cooperative Extension
$136
Emergency Management (Other
than Transportation)
$74,685
Health
$5,423
Information Technology
$71
Library
$268
IIn
Department
Overtime
Cost Increase
Personnel
$165
Planning
$11,831
Public Works
$12,159
Recreation and Parks
$584
Register of Deeds
$5,831
Sheriff
$11,295
Total
$128,472
Offsetting decreases in other
departments
($22,420)
Net Increase (Other than
Emergency Transportation)
$106,052
Overtime Costs as Compared to Other Staffing Approaches
As will be noted in reviewing the examples of needs /issues leading to the overtime,
there are a variety of needs leading to overtime such as:
• Absences of existing staff because of normal time off, leave for extended illness or
injury.
Coverage for position vacancies and training of new employees.
• Short term Increases in workload such as inclement weather, special projects or
other,
•
On.-going Increases in workload resulting from growth, addition of new job functions,
changes in job functions or the like.
The Board had asked the impacts of using overtime to meet work needs as compared
to other staffing approaches such as additional permanent staffing. The major impacts
are outlined below:
• Provides an immediately available alternative to meet immediate staffing needs with
trained, experienced staff.
For shorter term use, is lower cost than adding additional staff.
• While meeting the department's work needs, may also provide in some situations an
alternative for an employee to receive additional pay — which given the increasing
cost of living — may be desired on the part of the employee.
• For longer term use, may have substantial costs beyond the cost for the overtime
itself such as:
-5-
✓ Significantly increased staff turnover and the costs associated with
turnover including recruitment, training, and reduced service to citizens.
✓ Staff "burnout" and the lowered morale, productivity and on occasion less
than optimal work performance that may result.
Staff Recommendation
The Manager recommends as part of the 2005 -06 budget process that he examine
overtime costs with departments using significant amounts of overtime and consider
further any alternatives. The Manager also plans to reiterate to department heads their
responsibility for assuring budgets are monitored and controlled within the funds
available for overtime (budgeted overtime and approved lapsed salaries). The Budget
Office also will be examining the reports and information available to departments for
their use in monitoring these costs.
The Board may wish to provide direction to the Manager on any further issues to be
examined. If the Board desires, it might be interesting to explore further with
departments to what extent the overtime hours result from intermittent, sporadic or
special events as compared to the extent overtime hours result from on -going work.
November 11, 2004
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Attachment
Examples of Uses of Overtime Hours
Personnel contacted those departments who had larger amounts of overtime
expenditures and /or a significant increase in expenditures and asked about the needs
leading to the overtime in 2002 -03 and 2003.04. The responses are summarized
below:
For the Planning and Inspections Department ($11,831 increase) — The overtime was
used primarily in the Inspections Division to address:
• The increase in building activity, including multi - family and commercial building.
• The need for additional staff training in multiple trades to increase capacity to
complete the growing number of inspections with the staff available.
Note: The Board approved four additional permanent positions (including two time
limited positions) effective in January 2004 to address workload growth in Inspections.
For the Public Works Department ($12,159 increase) — Overtime was used primarily to:
• Cover extended absences of several employees due to illness or injuries.
• Provide staffing coverage during position vacancies while Public Works completes
the hiring process.
• Additional hours required by inclement weather events.
• Complete the renovation of Whitted Human Services Center, including cleanup and
preparation for the return move to Whiffed.
• Clean additional square footage added to County facilities since Public Works last
added custodial staff.
• Cover administrative support needs for the three divisions, including assistance in
the vacancy or absence of several supervisory positions and in implementing
several systems changes.
For the Aging — Orange Public Transportation Division ($4,991 increase) — Overtime
was used primarily for coverage for special events such as Hog Day and 250th
anniversary celebration and inclement weather.
For the Sheriff's Department ($11,295 increase) - Overtime is used primarily to:
Provide law enforcement support at football and basketball games, the Apple Chill
festival and other special functions. The Sheriff received reimbursement from the
towns and University as well as grants for the overtime totaling about $66,000 in
2003 -04.
• Assist with transport of prisoners and mental patients.
For the Emergency Management Department ($183,937 increase) —
• In the Communications Division — Overtime is used to provide coverage for required
training, position vacancies and leave, and special events,
• In the Emergency Medical Services Division — Overtime is used to:
✓ Provide special events coverage.
✓ Cover for employees on leave.
✓ Provide time for employee training,
✓ Cover for staff vacancies and new employees in training (about six months
before a new paramedic is released to work independently)
✓ Transfer of information at shift change.
✓ Commissioners' meeting coverage,
In the new Emergency Transportation Division — Overtime ($109,252 of the
increase) was used to provide staffing coverage for the transportation division. The
County assumed this responsibility from the Orange County Rescue Squad effective
July 1, 2003. Overtime primarily served to provide staffing coverage while
permanent and temporary staff were recruited and to provide coverage while new
staff were trained and oriented. As noted earlier, the total amount expended for
Emergency Transportation in 2003 -04 was within the amount budgeted.
November 11, 2004