Michael Dunn and the Class of Similarly Situated Persons, Kenner Fire Fighters Association Local 1427 IAFF v. City of Kenner

Summary

The Louisiana Supreme Court considered whether educational incentive pay, seniority incentive pay, holiday pay, and acting pay constituted “earnable compensation” for purposes of calculating pension contributions for Kenner firefighters. Interpreting La. R.S. 11:233 and 11:2252, the court held that all four payment types were earned, regular or recurring compensation and were not excluded from pension calculations. The court affirmed the court of appeal’s summary judgment in favor of the firefighters.

Holdings

1. Under La. R.S. 11:233 and La. R.S. 11:2252(9), compensation qualifies as earnable compensation when it is the full amount earned for a given pay period or on a regular tour of duty and is not within the statutes' expressly excluded categories, including irregular or nonrecurring payments.
2. Educational incentive pay is earnable compensation because it is earned through qualifying education, paid as part of the firefighter's compensation, and paid regularly rather than as an irregular or nonrecurring bonus.
3. Seniority incentive pay is earnable compensation because firefighters earn it by completing required periods of service, and its annual payment is regular and recurring rather than irregular or nonrecurring.
4. Holiday pay is earnable compensation because it is compensation for required holiday work, is earned as part of a regular tour of duty, and is not irregular or nonrecurring.
5. Acting pay is earnable compensation because it is the additional compensation earned by a firefighter who performs the duties of a higher classification during a regular tour of duty, even if the assignment is temporary or not guaranteed.
6. Summary judgment in favor of the firefighters was proper because no genuine issues of material fact existed and the firefighters were entitled to judgment as a matter of law.

Questions Presented

1. Whether educational incentive pay, seniority incentive pay, holiday pay, and acting pay constitute earnable compensation under La. R.S. 11:233 and La. R.S. 11:2252(9) for purposes of calculating firefighter pension contributions.
2. Whether summary judgment was proper when no genuine issue of material fact existed concerning the characterization of the four payment types.

Disposition

affirmed