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Overtime Cost for Exempt Employees
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Cross-reference: Overtime, Exempt employees
Summary: The City of Coral Gables (Applicant) requested reimbursement for overtime costs for exempt employees who performed eligible emergency work. The Applicant stated that it paid the employees in accordance with it pay policy, Rule 23 City-Wide Emergencies. FEMA denied the Citys request because the policy authorized overtime at the discretion of the City Manager. Therefore, it did not comply with OMB Circular A-87, which requires costs to apply uniformly to Federal and non-federal activities. The Regional Director agreed with this determination on first appeal.
Issues: Are overtime costs for exempt employees eligible?
Findings: No.
Rationale: OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments; Recovery Policy 9525.7, Labor Costs Emergency Work.
Second Appeal Brief
FEMA-1545-DR
PA ID# 086-14250-00; City of Coral Gables
PW ID# 5509; Overtime Cost for Exempt Employees
11/29/2007
Citation: FEMA-1545-DR-FL; City of Coral Gables, FLPA ID# 086-14250-00; City of Coral Gables
PW ID# 5509; Overtime Cost for Exempt Employees
11/29/2007
Cross-reference: Overtime, Exempt employees
Summary: The City of Coral Gables (Applicant) requested reimbursement for overtime costs for exempt employees who performed eligible emergency work. The Applicant stated that it paid the employees in accordance with it pay policy, Rule 23 City-Wide Emergencies. FEMA denied the Citys request because the policy authorized overtime at the discretion of the City Manager. Therefore, it did not comply with OMB Circular A-87, which requires costs to apply uniformly to Federal and non-federal activities. The Regional Director agreed with this determination on first appeal.
Issues: Are overtime costs for exempt employees eligible?
Findings: No.
Rationale: OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments; Recovery Policy 9525.7, Labor Costs Emergency Work.

