Download Report

FOR IMMEDIATE RELEASE
Contacts:
Lowell Goodman
Kyle Hall
May 26, 2015
lowell.goodman@lacity.org
kyle.hall@lacity.org
323.646.3249
408.836.3219
Controller’s Audit Reveals
‘Staggering’ Overtime at DOT
Los Angeles – Controller Ron Galperin released an audit report detailing exceptionally
high overtime use in the Department of Transportation’s Traffic Paint and Sign section.
After receiving an anonymous tip to the Controller’s Fraud Waste & Abuse Hotline,
Galperin’s staff used data analysis to identify four supervisors in the Traffic Paint and
Sign Section who received at least $70,000 in overtime pay during FY 2013-14. One
traffic marking and sign superintendent received $155,319 in overtime on top of his
normal $78,000 yearly earnings—effectively tripling his salary.
When the Controller’s audit staff began asking questions of the highest overtime
earners in the Traffic Paint and Sign Section, overtime among them dropped by about
40%—to levels where it remains today. Galperin and DOT leadership believe the
decline stems from better controls and as word spread among employees that overtime
was being closely monitored.
“This report should put everyone on notice,” said Controller Galperin. “We are
watching overtime and we will not permit it to be abused.”
The Controller began his investigation after his Fraud, Waste and Abuse Unit received a
tip alleging employees in the Department’s Traffic Paint and Sign section were claiming
overtime for hours they did not work. Employees in the section paint street markings
and post street signs after the Bureau of Street Services resurfaces or repaves streets.
In FY 2013-14, 93% of Traffic Paint and Sign employees received overtime. Citywide,
among full-time employees excluding LAPD, LAFD and DOT, the number was 49%.
Among the other findings:
 Super-human work schedules: One employee was paid for 261 hours during a
two-week period. He claimed to work 10 18-hour days and 4 days of at least 16
hours.
 Doing the jobs of two full-timers: 30 out of 67 Traffic Paint and Sign
employees, including supervisors, claimed more than 1,000 hours of overtime in
FY 2013-14; seven of the 30 claimed to work at least 2,000 hours of overtime. (A
full-time employee is paid for 2,080 hours per year. 2,000 hours of overtime in a
year equates to, on average, working more than 38 hours of overtime every week
of the year. An employee who does this is constantly working double shifts, doing
the job of two full-timers.)
 The Tab: Traffic Paint and Sign employee overtime cost the City $3.3 million
dollars in FY 2013-14. The average overtime pay for each Traffic Paint and Sign
employee was $48,100, compared to $8,377 for other departments, excluding
LAPD, LAFD and DOT.
After looking at the Traffic Paint and Sign section, Galperin’s staff audited overtime
practices throughout the DOT, which were determined to be out of line with the rest of
the City. As a percentage of salary costs, the DOT pays more overtime than any other
department except the Fire Department. The cost of paid overtime at the DOT has more
than doubled since FY 2009-10 to $14.6 million in FY 2013-14. Paid overtime accounts
for 12% of DOT salaries—compared to 5.6% at LAPD and 4.7% at other civilian
departments.
“All told, we’re looking at spiraling costs and a climate that practically invites
abuse,” said Galperin. “I urge DOT leadership to remain watchful and determine
whether additional staffing might be more cost-effective than overtime.”
The Controller’s audit of the DOT examined the period from FY 2011-12 to FY 2013-14,
before Seleta Reynolds took over as General Manager. In the Department’s response to
the audit, Ms. Reynolds indicated her administration has reviewed and accepted the
audit and recommendations.
“Thank you to Controller Ron Galperin and his staff for their assistance,” said Reynolds.
“We have begun to put into action the audit's recommendations: to strengthen our
overtime policies to eliminate confusion; to create an online overtime request and
approval system; and to right-size our overtime budget to meet expected day-to-day
operational labor costs required to keep our streets safe. Integrity and accountability are
core values in our Strategic Plan, and we intend to meet the public's expectation for
delivering service in a fiscally responsible way.”
###