Three union workers have initiated a class action lawsuit against the city of Seattle on behalf of nearly 14,000 municipal employees, citing issues stemming from a newly implemented human resources system. The lawsuit alleges that the rollout of this system, which went live in September 2024, has led to widespread inaccuracies in employee paychecks and payroll statements.
The workers contend that many city employees have faced underpayment or, in some cases, received no pay at all. The system, which operates on the Workday platform, has reportedly caused delays in the distribution of wages and benefits owed to employees.
The allegations fall under Seattle’s wage theft law, which mandates that employees receive all wages owed to them on scheduled paydays. Additionally, the lawsuit includes claims related to Seattle’s Paid Sick and Safe Time Ordinance, which requires the city to maintain accurate records of employees’ accrued leave benefits. The employees are demanding that the city either rectify or replace the problematic system, and they are calling for an independent audit of all wages and benefits earned since its implementation. They seek compensation for all unpaid wages, including interest, as well as damages for the city’s alleged violations.
Among the recurring errors identified in the lawsuit are:
– Failure to compensate for all hours worked
– Failure to pay for overtime hours
– Incorrect pay rates
– Excessive and incorrect wage deductions
– Mistakes in leave accruals and deductions
– Improper handling of deferred compensation
– Inaccurate withholding of deferred deductions
The workers assert that the city was aware, or should have been aware, that transitioning to the Workday system could lead to these complications. They point to similar issues experienced by other state and local governments, including those in Maine, Oregon, Baltimore, and Los Angeles, over the past few years.
