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Ordinance No. NS-2208E 358 Page 3 tion of any proceedings taken hereunder. (i) A reduction in pay shall be treated as a demotion under this section, unless the reduction in pay is part of a plan of reclassification of positions or of a plan to reduce salaries and wages in connection with a general economy or curtailment program, or is the result of a finding by the appointing authority that the employee's performance does not justify the continuance of a level of pay that is dependent upon meritorious service. A failure to grant an increase in pay at a time when an increase would otherwise have been granted as a part of a plan to increase salaries and wages throughout the city service shall not be treated as a demotion under this section. (j) The personnel board may adopt procedural rules to govern the conduct of its hearings. SECTION 2: In Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 L.Ed. 2d 1016 (1985), the United States Supreme Court made the Fair Labor Standards Act and its minimum-wage and overtime provisions expressly applicable to state and municipal employees. This decision effectively overruled the Court's earlier decision in National Leaque of cities v. User¥, 426 U.S. 833, 96 S.Ct. 2465, 49 L.Ed.2d 245 (1976). In response, Congress enacted the Fair Labor Standards Amendments of 1985, Pub. L. No. 99-150, Stat. 789, to "ease the fiscal transition for state and local governments newly subject to the Act." Among the amendments were provisions that parts of the Fair Labor Standards Act would not apply to state and municipal governments until April 15, 1986. Fair Labor Standards Amendments of 1985, Pub. L. No. 99-150, § 2(c) (1), 99 Stat. 787, 788-789. The amendments to Santa Ana Municipal Code § 9-118 made by this ordinance shall be retroactive to April 15, 1986. The Executive Director of the City's Personnel Services Agency is hereby directed to research and review all pertinent City records to determine whether any City employee, otherwise exempt from the Fair Labor Standards Act, has been suspended from employment, at any time subsequent to April 15, 1986 and up to the date of adoption of this Ordinance, for reasonable and sufficient cause, for any period of one week or less. If the Executive Director finds evidence of any such suspension or suspensions, the Executive Director shall cause to be restored to each such affected employee all salary and other fringe benefits (such as accrued vacation leave, sick leave or compensatory time) lost b~f that employee for the period of such suspension. The purpose this amendment to Santa Ana Municipal Code § 9-118 is to avoid liability, under 29 C.F.R. § 541.118 (a) (5), for violating the Fair Labor Standards Act. The purpose of the retroactivity provision of this ordinance, and the direction given to the Executive Director of the City's Personnel Services Agency regarding the suspension of any exempt employee for one week or less, is to fall within the "window of correction" provision contained in 29 C.F.R. § 541.118(a) (6). 3 @ ©