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Citation: FEMA-1607-DR-LA, City of Lake Charles, Force Account Overtime,
Project Worksheet (PW) 685

Cross-reference: Labor Costs

Summary: Following Hurricane Rita, the City of Lake Charles’s (Applicant) declared the period from September 23, 2005, through October 9, 2005, an emergency holiday.

Hourly and salaried employees that worked during this period received holiday overtime pay. FEMA determined that the Applicant’s designation of the emergency holiday period was a discretionary act. Subsequently, FEMA prepared PW 685 to reimburse the Applicant for actual overtime hours worked by its hourly employees.

In its first appeal, submitted March 28, 2006, the Applicant claimed that its personnel policy provides for overtime payment for all work performed during emergency holidays. The Regional Administrator denied the Applicant’s request for reimbursement on October 11, 2007, because the Applicant’s designation of an emergency holiday was discretionary and the actual hours worked qualified as force account straight time. Based on Section 3.4(C) of the Applicant’s personnel policy, the Regional Administrator granted Earned Time Off costs for the Applicant’s salaried supervisors as overtime compensation.

The Applicant submitted its second appeal on February 27, 2008, wherein it reiterated its position in its first appeal and maintained that its declaration of an emergency holiday was not discretionary.
Issues: Is the Applicant’s emergency holiday pay rate eligible under Public Assistance?
Findings: No.

Rationale: Response and Recovery Policy 9525.7, Labor Costs – Emergency Work, dated July 20, 2000