City of St. Petersburg Will Rescind $250,000 of Employee Bonuses (Determined to Be Illegal)

According to a report from Florida Politics, St. Petersburg will rescind approximately $250,000 worth of bonuses that were awarded to city employees. Members of the city council have determined that the bonuses—which were paid to employees who worked on a specific contract—have been determined to be unlawful. In this article, you will find a more comprehensive overview of the employment law controversy.

Background: St. Petersburg Employees Awarded Bonuses for “Rays-Hines” Deal 

The controversy in this employment law case is focused on a city contract referred to simply as the “Rays-Hines” deal. Broadly explained, it involves a major redevelopment of the 86-acre site currently occupied by Tropicana Field into a mixed-use district that, among other things, includes a new state-of-the-art Major League Baseball (MLB) stadium for the Rays. ballpark. The project is massive. It represents a $5.2 billion investment over the course of two decades. Not only does it include a new baseball stadium for the Rays and many commercial properties, it would deliver more than 5,000 more residential housing units. Several city employees—mostly high-ranking city employees—were granted bonuses in relation to their work on the deal.

 Major Legal Questions: Municipality Must Have Clear Policy for Bonuses 

The controversy surrounding the bonuses awarded by St. Petersburg Mayor Ken Welch to city employees involved in the Rays-Hines deal centers on potential legal issues related to Florida statutes governing public employee compensation. Florida law generally prohibits extra compensation to municipal employees unless there is a pre-existing employment contract that includes such bonuses, or if the city council has adopted a specific bonus payment program that meets certain criteria, such as basing bonuses on work performance and clearly defining the standards and evaluation process. The City of St. Petersburg did not meet this standard. The lack of a uniform policy could mean that the bonuses were in violation of Florida Statute § 215.425.

 Note: Private employers are not subject to the same standards for bonuses in Florida. A private employer has significant discretion to award bonuses to employees when deemed warranted. They are not required by Florida state law to have any written policy for worker bonuses. Though, it should be noted that if bonuses are issued (or not issued) in a discriminatory or retaliatory manner, that could lead to liability.

Mayor of St. Petersburg Rescinded Bonus Payments 

Mayor Ken Welch rescinded bonuses to city employees for their work on the Rays stadium deal. The decision to pull back the bonuses came after significant public and City Council backlash over the legality and propriety of these payments—with a major concern being that they were not backed by a formal city policy.

 Get Help From an Employment Attorney in Florida 

Employment law is complicated. Employers and employees need reliable legal representation when an issue arises, including any dispute related to the payment of wages, benefits, or bonuses. Contact an experienced Florida employment lawyer for a confidential initial consultation.