Tenth Circuit Approves City of Albuquerque's Method of Calculating Over Time Pay

In an important victory for the City of Albuquerque, the Tenth Circuit in Chavez v. City of Albuquerque issued an opinion upholding a decision of the District of New Mexico.

The Tenth Circuit held:  (1) the City’s dual calculation method does not violate the Fair Labor Standards Act (“FLSA”); (2) sale back proceeds for sick leave are includable in the regular rate calculation while those for vacation days are not; (3) paid time off, paid under the CBA but not required under the FLSA, is not hours worked for purposes of calculating the regular rate under the FLSA; (4) the proper divisor for calculating the regular rate is the number of hours actually worked, not 40; and (5) the City’s use of a one-half multiplier is also proper

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