The University of California owes workers $1.3 million following a settlement with the U.S. Department of Labor for underpaying overtime payments for hourly employees.
The error occurred while the university was attempting to replace the previous payroll system with the new UC Payroll, Academic Personnel, Timekeeping and Human Resources system.
In late 2015, the UC and Department of Labor started investigating the UC’s operations from Jan. 1, 2014 to Dec. 31, 2016.
According to the settlement the UC reached with Department of Labor in May, the UC owes $746,746 in back wages and $616,011 in liquidated damages to 13,721 current and former employees. Liquidated damages are calculated as 100 percent of back wages for the period prior to January 2014.
The UC added in a statement that it corrected the errors within the payroll system and modified the overtime rate for employees at locations that have not yet switched to UCPath.
Claire Doan, a UC spokesperson, said the University will not seek reimbursement from employees who have been overpaid due to the system errors.
The UC agreed to reimburse back wages and liquidated damages to current and former workers whose back wages exceed $20, according to the settlement document.
“The average amount of back wages owed to an individual employee included in the DOL settlement is under $55,” Doan said.
The majority of the underpayments were less than $5 per payment, according to the UC’s statement.
John de los Angeles, communications director for the American Federation of State, County and Municipal Employees Local 3299, the UC’s largest labor union, said the Department of Labor began its investigation after a coalition of UC labor union filed grievances and requests.
De los Angeles said 1,464 current and 144 former patient care employees, as well as 792 current and 103 former service employees, are set to receive back pay in damages from UCLA.
Affected workers will receive their payments from the University in September.