In a matter of significant consequence for public safety professionals throughout California, Mastagni Holstedt has filed an amicus curiae brief on behalf of the California Professional Firefighters in the pending Ninth Circuit appeal of David Barnett et al. v. City of San Jose.
The Honorable James Donato, following a bench trial on stipulated evidence, issued a decision that correctly resolved long-standing disputes over the proper method for calculating the regular rate of pay for salaried firefighters under the FLSA. Specifically, Judge Donato held that the regular rate must be determined using the fixed divisor corresponding to the firefighters’ scheduled hours—224 hours over the 28-day work period—rather than dividing by total hours actually worked. Consistent with the published decision our firm obtained in Padilla v. City of Richmond, (N.D. Cal. 2020) 509 F.Supp.3d 1168, the court further ruled that holiday in lieu payments must be included in the overtime rate. In light of the City’s appeal, our brief respectfully urges the Court of Appeals to affirm this well-reasoned judgment in full.
The district court’s ruling rests on three principal determinations, each of which aligns squarely with the FLSA, its implementing regulations, and binding Ninth Circuit precedent. First, the court properly calculated the regular rate of pay for these salaried firefighters by employing the fixed 224-hour divisor prescribed by 29 C.F.R. § 778.113(a). Because the Memorandum of Agreement establishes a recurring bi-weekly salary intended to compensate a fixed schedule averaging 112 hours—equivalent to 224 hours over the 28-day FLSA work period—the salary methodology, rather than an hourly divisor based on actual hours worked, yields the correct regular rate. This approach prevents the fluctuating and artificially depressed rates that would result from the City’s proposed methodology, particularly in work periods when firefighters, consistent with their 48/96 schedule and frequent unscheduled hours, exceed the average.
Second, the court correctly limited the credit available for the City’s contractual overtime payments to the premium (one-half) portion only. Under 29 U.S.C. § 207(h)(2) and 29 C.F.R. § 778.315, the straight-time component of contractual overtime constitutes wages already owed for hours worked and may not be applied to offset the FLSA overtime premium. The district court’s representative calculation for plaintiff David Barnett illustrated the point with precision: after determining the inclusive regular rate and the FLSA overtime due on hours above the 212-hour threshold, only the 0.5 premium on qualifying contractual overtime hours was creditable, revealing an underpayment of $1,100.83 for a single period. To hold otherwise, the court observed, would systematically underpay straight-time wages and reward the very accounting practices the FLSA was enacted to prevent.
Third, and of particular importance, the court correctly required inclusion of holiday-in-lieu payments in the regular rate numerator. These payments function as compensation for the inherent inconvenience of a 24/7 fire suppression schedule that affords no paid idle holidays, not as excludable remuneration for periods of non-work “due to” a holiday within the meaning of 29 U.S.C. § 207(e)(2) and 29 C.F.R. §§ 778.218 and 778.219. The district court’s analysis, consistent with Padilla v. City of Richmond and the Department of Labor’s 1999 Opinion Letter addressing precisely this issue, confirms that labeling such remuneration “holiday pay” does not render it excludable when it bears no connection to actual idle time. The court further upheld the award of liquidated damages and the issuance of declaratory relief establishing the proper methodology going forward.
Our amicus submission emphasizes the broader ramifications of these holdings for the more than 32,000 career firefighters represented by California Professional Firefighters. A favorable ruling on appeal will preserve a clear, regulation-based framework that harmonizes collective bargaining agreements with the FLSA’s overtime floor. It will eliminate protracted disputes over the proper divisor and crediting rules that have, in the wake of Flores v. City of San Gabriel, frustrated early settlement and out-of-court resolution of claims. Most importantly, affirmance will ensure that salaried firefighters receive the full measure of compensation to which they are entitled for the demanding and often unpredictable hours they work in service of public safety.
The California Professional Firefighters has a vital institutional interest in these issues, and we are gratified to have assisted in presenting them to the Ninth Circuit. Should the Court affirm, the decision will provide persuasive authority across the Circuit, safeguarding reliable funding for firefighting operations while protecting the economic security of the men and women who staff them. We will continue to monitor the appeal closely and will provide further updates as developments warrant.
The proper calculation of overtime is not merely a matter of arithmetic; it is a cornerstone of fair labor relations and the rule of law in public employment.
