City of Philadelphia Implemented Flawed Payroll Software, Failed to Pay Overtime, Suit Says

New to ClassAction.org? Read our Newswire Disclaimer

The City of Philadelphia is facing a proposed collective action that claims it failed to pay overtime as required by the Fair Labor Standards Act after implementing a new payroll system called the “OnePhilly” Program.

OnePhilly, which was implemented in 2019 and currently in use at all departments across the city, was designed to integrate Philadelphia’s timekeeping, payroll, pensions and benefits into one system, the lawsuit explains. The complaint claims that although the city was made aware as early as 2016 that a mistake in the system could cause employees to be underpaid or unpaid, it still rolled out the program on March 25, 2019 “despite the clear warnings that OnePhilly was not ready.” Shortly after the system was implemented, city employees began to notice that they were not receiving proper compensation for overtime hours, the case says.

With regard to the lead plaintiff, the case claims the woman began missing overtime from her paychecks “almost immediately” after the OnePhilly system was implemented. The plaintiff, who was employed as an office clerk typist, claims she has frequently worked in excess of 40 hours per week since OnePhilly was introduced, but has “consistently” failed to be paid at the proper overtime rate and for all applicable hours.

According to the complaint, the city has been made aware that many of its employees are missing overtime from their paychecks but has not fully reimbursed its workers or offered a solution to this recurring problem. As a result, “thousands of employees who worked overtime have not been paid in full for their overtime wages,” the complaint says.

The suit seeks to represent all non-exempt employees who worked for the City of Philadelphia after March 25, 2019 under a 7.5 hour per day and 37.5 hour per week schedule and were not paid overtime for a workweek of more than 40 hours. The lawsuit requests that all eligible city employees who opt to join the action be compensated for all unpaid overtime wages.

Correction guards, fire protection workers and law enforcement employees are excluded from the opt-in collective action.