Kreeft v. City of Oakland

68 Cal. App. 4th 46, 80 Cal. Rptr. 2d 137, 22 Employee Benefits Cas. (BNA) 2478, 98 Cal. Daily Op. Serv. 8724, 98 Daily Journal DAR 12138, 1998 Cal. App. LEXIS 988
CourtCalifornia Court of Appeal
DecidedNovember 30, 1998
DocketNo. A079920
StatusPublished
Cited by41 cases

This text of 68 Cal. App. 4th 46 (Kreeft v. City of Oakland) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kreeft v. City of Oakland, 68 Cal. App. 4th 46, 80 Cal. Rptr. 2d 137, 22 Employee Benefits Cas. (BNA) 2478, 98 Cal. Daily Op. Serv. 8724, 98 Daily Journal DAR 12138, 1998 Cal. App. LEXIS 988 (Cal. Ct. App. 1998).

Opinion

Opinion

PARRILLI, J.

Plaintiffs are certified class representatives of firefighters who have retired under the Oakland Police and Fire Retirement System (retirees). Under the Oakland Police and Fire Retirement System (Fire Retirement System), a retiree’s pension is a fixed percentage of the current compensation “attach[ed] to the . . . rank” the retiree held upon retirement. Thus, as the salaries of active firefighters increase, so do the pensions Oakland (City) pays to its retired firefighters. This is a so-called “fluctuating” pension system.1

The federal Fair Labor Standards Act of 1938 (FLSA) currently requires the City to pay firefighters time and one-half for every hour they work in [49]*49excess of 204 hours per 27-day pay period. The City must pay this “overtime” premium even though the firefighters work more than 204 hours as part of their “normal” schedule. The primary question in this case is whether such federally mandated overtime pay is “attached to the rank” the retirees held at the time they retired, and must therefore be included in calculating their pensions. We agree with the trial court that such premium pay is not “attached to the rank” the retirees held at retirement, but is instead “attached” to the individuals within a rank. Consequently, we affirm the judgment.

I

Facts

The Fire Retirement System is a creature of the Oakland City Charter (Charter) (Charter, art. XXVI). All sworn City firefighters hired on or before June 30,1976, are members of the Fire Retirement System. Those hired after that date are members of the separate, state-created Public Employees’ Retirement System (PERS).

The Charter specifies that, under the Fire Retirement System, a retiree’s pension is a fixed percentage2 of the “compensation attached to the average rank held” at the time of retirement. (Charter, § 2608.) The Charter defines the terms “compensation” and “compensation attached to the average rank held” as follows:

“ ‘Compensation’ as distinguished from benefits under the Labor Code of the State of California, shall mean the monthly remuneration payable in cash, by the City, without deduction, for the time during which the individual receiving such remuneration is a member of the Police or Fire Department, but excluding remuneration paid for overtime and for special details or assignments as provided in Sections 91 and 97 of the Charter.” (Charter, § 2607, fn. omitted.)
“ ‘Compensation attached to the average rank held’ shall mean the compensation attached to the lowest rank held during the three years immediately preceding retirement plus one thirty-sixth (1/36) of the difference between it and the compensation attached to any higher rank held during that period of each month . . . the higher rank was held.” (Charter, § 2607.)

A. FLSA Premium Pay.

In 1985, the United States Supreme Court held that the FLSA (29 U.S.C. § 201 et seq.) applies to local governments. (Garcia v. San Antonio Metro. [50]*50Transit Auth. (1985) 469 U.S. 528 [105 S.Ct. 1005, 83 L.Ed.2d 1016].) The FLSA requires the City to pay its fire protection employees at the “overtime” rate (one and one-half times their regular rate of pay) if they actually work more than 204 hours during a standard 27-day work period.3 (29 U.S.C. §§ 207(a)(1), 207(k); 29 C.F.R. § 553.230(c) (1998).) Hours paid for vacation, illness, leave or similar reasons do not count toward the 204-hour maximum of hours actually worked. (29 U.S.C. § 207(e)(2); 29 C.F.R. § 553.221 (1998).)

The City normally schedules most firefighters4 to work one 24-hour shift every third day. Thus, a firefighter may be scheduled to work nine 24-hour shifts in a twenty-seven-day work period. If a firefighter works this full schedule, he or she will work 216 hours (9 x 24) in the 27-day work period, and will be entitled to 12 hours of pay at time and one-half. However, as a practical matter, more often than not firefighters do not work nine full shifts in a twenty-seven-day period. This is because most pay periods include a mandatory day off, vacation time, sick leave or some other event that brings the firefighter’s number of total hours actually worked below the 204-hour maximum. Retirees’ own analysis of the data the City provided shows that from 1992 to 1995 the average number of times a firefighter received FLSA premium pay—i.e., the average number of times a firefighter actually worked more than 204 hours in a 27-day pay period—ranged from a low of 2.21 times per year in 1995 to a high of 2.57 times in 1992. This is only a fraction of the 13.5 27-day pay periods during each year.

Moreover, the City’s analysis of the 1992-1995 statistical data shows the amount and frequency of FLSA premium pay varied widely from individual to individual and from rank to rank. For example, among the lowest rank (“firefighter”), the percentage who received no FLSA premium pay at all ranged from a low of 7 percent in 1995 to a high of 21 percent in 1993; the average number of times an entry-rank firefighter received premium pay ranged from 2.09 times per year to 2.40 times per year; and the number of actual premium hours individual entry rank firefighters worked in a given year ranged from a low of 0 to a high of 48.5 hours. Similarly, the [51]*51percentage of engineers who received no premium pay ranged from a low of 8 percent in 1992 to a high of 27 percent in 1993; the average number of times an engineer received premium pay ranged from 1.75 times per year to 2.48 times per year; and the number of actual premium hours individual engineers worked each year ranged from a low of 0 to a high of 39.2 hours. With respect to the higher ranks, the percentage of lieutenants who received no FLSA premium pay ranged from a low of 9 percent in 1994 to a high of 25 percent in 1993; the average number of times a lieutenant received premium pay ranged from 1.19 to 1.83 times per year; and the number of premium hours individual lieutenants worked each year ranged from 0 to 30.6 hours. Finally, the percentage of captains who received no premium pay ranged from 13 percent in 1994 to 26 percent in 1992; the average number of times a captain received premium pay ranged from 1.93 to 2.16 times per year; and the number of premium hours individual captains worked each year ranged from 0 to 47.2 hours.5

Because of the variability in the data, the City’s economic expert, Jerald Udinsky, Ph.D., opined in a declaration that the “average” annual number of times all firefighters received FLSA premium pay from 1992 to 1995 (2.5) was not a meaningful predictor of the experience of most firefighters. According to Dr.

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68 Cal. App. 4th 46, 80 Cal. Rptr. 2d 137, 22 Employee Benefits Cas. (BNA) 2478, 98 Cal. Daily Op. Serv. 8724, 98 Daily Journal DAR 12138, 1998 Cal. App. LEXIS 988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kreeft-v-city-of-oakland-calctapp-1998.