Duncan Requests $8.2 Million Appropriation to Settle Back Pay Issue with Firefighters





mh/opapp.pr                   Contact:  Bruce Sherman, 301-217-2600 or
                                  Jerry Pasternak, 301-217-2500       

DUNCAN REQUESTS $8.2 MILLION
APPROPRIATION TO SETTLE BACK
PAY ISSUE WITH FIREFIGHTERS        For Immediate Release:  June 12, 1996



     Montgomery County Executive Douglas M. Duncan has recommended to the
County Council an $8.2 million supplemental appropriation and budget amendment
to the FY96 budget.  If approved, the money -- $7.6 million in settlement
costs -- will be loaned to 15 independent volunteer fire and rescue
corporations to settle an overtime pay lawsuit by firefighters who were
employed by the corporations. An additional $600,00 may be needed for
withholding costs. 
     The Fair Labor Standards Act (FSLA) suit, Conway v, Takoma Park VFD v.
Montgomery County (and a related case, Venuto v. Sandy Spring VFD v.
Montgomery County) was filed in United States District Court in 1986 on behalf
of more than 500 career firefighters who claimed they were owed overtime pay
by the corporations for all hours worked over 40 per week.  The FSLA requires
overtime pay compensation by private employers after 40 hours worked in a
single workweek (public agency firefighters are only entitled to overtime
after 53 average hours worked per week).  Career firefighters became County
employees in 1988 as a result of legislation passed by the County Council. 
In 1990, the independent corporations made the County government a third-party
defendant and filed claims for indemnification.
                                  -more-

DUNCAN REQUESTS SUPPLEMENTAL OF $8.2 MILLION           2-2-2-2

     In March of this year, the firefighters and the fire corporations
entered into a written settlement and Montgomery County agreed to loan the
necessary funds to the fire corporations to settle the claim.  In return, the
fire corporations have agreed to enter into a security agreement with the
County for the $7.6 million loan.
                              # # #

Return to Montgomery County Press Releases Page.

County Home | About Your County | County Government | Services | Guest Book | Questions for the Executive
News | Phone Book | Business Development | Council | Related Resources