The union representing Louisville firefighters filed suit yesterday, alleging the city cut off their state incentive pay as retaliation, and is seeking to have the money restored.
Starting Dec. 1, the city opted out of the state program that provides firefighters $3,100 each annually for training they complete as part of their job.
Mayor Jerry Abramson decided that he could no longer include incentive pay in the checks because of a court ruling in the firefighters' favor that says incentive pay must be used in overtime calculations.
Kerri Richardson, a spokeswoman for Abramson, said she can't comment on pending litigation, but reiterated that the city would like to find a way for firefighters to get their incentive pay without it costing the city additional money.
Abramson said that ruling would have cost the city about $1 million a year in additional overtime costs.
The lawsuit filed yesterday in Jefferson Circuit Court alleges that the city's decision to remove the incentive pay was retaliation for that ruling, which entitles them to back pay for at least five years of miscalculated wages because incentive pay and other bonuses were not included in the overtime calculations.
The suit asks that the court issue an injunction reinstating the incentive payments and ordering the city to make up the payments missed since the city cut them off.
"It's a huge hit," said Craig Willman, president of the firefighters union.
On average, the loss of incentive pay costs each firefighter about $134 per two-week paycheck.
Because the courts have determined that the firefighter pay was miscalculated for several years, other cities now face the issue of how to dole out the incentive pay without bearing additional cost.
Firefighters have also filed an unfair labor practice grievance with the state Labor Cabinet saying that the city removed the incentive pay improperly because it did not consult with the union about it.
Incentive pay is state money that comes from fees assessed to those who buy insurance. State law requires that the money be passed through local paychecks, and it cannot be given to firefighters directly.
The state Fire Commission, the League of Cities and fire unions are working to come up with a proposal that would limit city liability, while still providing the supplement to firefighters.
Any proposal would have to be voted on by the legislature. Bruce Roberts, division director for the Fire Commission, has said he expects something to be ready to present during the current legislative session.
Willman said firefighters filed the lawsuit because there is no guarantee that the issue will be resolved by the legislature.
"We want to make sure we're using all our tools and resources to get our money back," he said.