By Whitewater Valley Voice Staff
CONNERSVILLE, Ind. — The City of Connersville is preparing to use funds intended for major projects to settle a federal class-action lawsuit stating the city violated the Fair Labor Standards Act regarding overtime pay for paramedics and EMTs.
According to a report by the Connersville News-Examiner, the settlement is expected to cost the city at least $425,000.
The lawsuit, filed in February 2024 in the U.S. District Court for the Southern District of Indiana, was initially brought by one EMS employee and later expanded into a class action. The plaintiffs are seeking unpaid overtime wages and liquidated damages.
Court documents assert that the City of Connersville and its Fayette County EMS unit failed to pay employees time-and-a-half for hours worked over 40 in a workweek. The complaint states that while employees were provided “one comp day a month,” they were not paid the proper overtime compensation required by federal law.
The Legal Distinction
The issue stems from a pay practice that had been in place for decades. The mayor told the News-Examiner that the city had simply continued this practice, originating from when EMS was part of the Fire Department.
However, the city’s legal team discovered a critical distinction in the Fair Labor Standards Act. While it is legal to pay a salary to professional firefighters, EMS professionals who do not have legal authority for fire suppression must be paid as non-exempt workers. This requires them to receive time-and-a-half pay for hours worked over 40 in a seven-day period.
The mayor reportedly stated that the city did not realize it had been paying the employees incorrectly and that the legal team has denied intentional wrongdoing.
Funding and Public Hearing
The City Council is scheduled to meet Monday, Dec. 1, 2025, to vote on the financial transfers necessary to pay the settlement.
According to the agenda, the council will vote on a resolution to transfer $350,000 from the city’s riverboat funds to help pay the settlement. Riverboat funds are typically used for large, non-budgeted purchases.
The mayor confirmed to the News-Examiner that while $350,000 will come from the riverboat fund, the city may have to draw additional money from investments to cover the remaining portion of the $425,000 minimum cost. The settlement funds will reportedly not cover the costs the city incurred in defending itself.
The funds transfer will be the subject of a public hearing during the Dec. 1 City Council meeting, which begins at 7 p.m. Monday at City Hall, 500 Central Ave.
Information for this report was gathered from U.S. District Court documents and a report by the Connersville News-Examiner.
Reference
Staff Reports. “City Will Pay to Settle Labor Lawsuit.” Connersville News-Examiner, November 27, 2025. https://www.newsexaminer.com/city-will-pay-to-settle-labor-lawsuit/article_853af78e-76cc-5ef3-90ab-eba8a0ed0d68.html.
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