Oakland is grappling with a serious budget crisis as an audit reveals that the city overpaid employees in the Departments of Transportation and Public Works by more than $1.6 million in excess overtime from January 2018 to May 2024. This occurred because the city employed an incorrect method for calculating overtime pay, deviating from federal law standards. The audit raises concerns that similar overpayments might extend to other departments, highlighting potential systemic payroll issues that could further strain the city's financial situation.
The investigation revealed that between January 2018 and May 2024, the city of Oakland paid over $1.6 million in excess overtime due to incorrect calculation methods.
An audit indicated that the city utilized a different calculation method for overtime than what is mandated by federal law, leading to significant overpayments.
Concern over the budget crisis is amplified by findings that excessive overtime payments may have occurred in other city departments, beyond just Transportation and Public Works.
The report highlights systemic issues in Oakland's payroll processes, raising questions about accountability and financial management amidst an ongoing budget crisis.
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