Greuel reminds L.A. City Hall it still owes employees $10 million in sick time pay
As Los Angeles city officials prepare to eliminate 1,000 jobs before July to address a $200-million budget gap, City Controller Wendy Greuel today urged her colleagues not to forget the costs they have deferred to next year’s ledger, including the millions the city owes its employees for accrued sick pay.
According to the controller’s office, under current labor agreements, once a city employee earns 800 hours of sick time, they are paid half of any accrued sick time over that 800-hour threshold as a January bonus.
Last January, the city paid its employees $13.3 million for accrued sick time. But, Greuel noted in a memo today, the unions agreed to defer those payments as part of their “shared sacrifice” agreement last fall.
So this January, the city paid just $3.35 million in accrued sick time to employees who are not covered by those agreements.
But they will have to pay the $10 million difference in the next fiscal year when the city is already facing a $400-million deficit.
“I urge you not to look at this as long-term savings because it is simply a temporary deferral for a payment the city will have to make up in the next fiscal year," Greuel wrote in warning her colleagues about the city’s “dire financial situation.”
--Maeve Reston at L.A. City Hall