DATE: September 15, 2026
TO: Mayor and City Council
FROM: City Attorney’s Office
SUBJECT
Title
Adopt a Resolution Approving and Ratifying the Settlement Agreement and General Release of All Claims, as Amended, Resolving Ghali et al. v. City Of Hayward, and a Side Letter of Agreement Amending the Memorandum of Understanding Between the City of Hayward and the International Association of Firefighters, Local 1909, Regarding the Calculation of Overtime Compensation and Authorize Transfer of Funds from the Risk Management Fund to the General Fund
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) approving and ratifying: (1) the Settlement Agreement and General Release of All Claims in Ghali et al. v. City of Hayward (Attachment III), as amended (Attachment IV); and (2) the Side Letter of Agreement between the City of Hayward and the International Association of Firefighters, Local 1909 (Local 1909), amending Section 4.02 of the parties' Memorandum of Understanding regarding the calculation of overtime compensation (Attachment V).
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SUMMARY
The City, Local 1909, and the plaintiffs in Ghali et al. v. City of Hayward reached a global resolution of disputes concerning the City's calculation of overtime compensation. The resolution includes a $600,000 monetary settlement of specified historical claims, prospective changes to the calculation of overtime for Local 1909 members.
Those terms were subsequently implemented through a long-form Settlement Agreement and amendment and an Overtime Side Letter. On July 30, 2026, the United States District Court for the Northern District of California approved the FLSA settlement and entered final judgment. The City thereafter implemented the prospective overtime-calculation methodology beginning with the first full pay period following court approval.
Although the agreements were executed as part of the negotiated resolution, the Settlement Agreement, amendment, and Overtime Side Letter were not separately presented to the City Council for formal approval. To establish a clear public record of approval, staff recommends that the Council approve and ratify the agreements and their prior execution and implementation.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Settlement Agreement and General Release of All Claims
Attachment IV Amendment to Settlement Agreement
Attachment V Overtime Side Letter