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Pinal County supervisors approve back pay after outside counsel finds unauthorized hires
Summary
The Pinal County Board of Supervisors approved waiving privilege to receive outside counsel advice and authorized back pay after Snell & Wilmer found two or three workers who performed services despite unauthorized hiring were legally entitled to wages and benefits under Arizona law.
The Pinal County Board of Supervisors on March 4 approved a request to waive attorney-client privilege so outside conflict counsel could advise the board on employment matters, and accepted a recommendation that the county provide back pay to individuals who performed services after being hired outside normal procedures.
Kim Dennis, an attorney with Snell & Wilmer retained by the board, told supervisors the firm "determined that back pay was in fact owed because Arizona law entitles any person who performs work for an employer to be paid wages, including applicable benefits such as earned paid sick time and paid time off if provided to employees." Dennis said the hires had been made orally and outside typical channels, and that the county was unaware those individuals were performing services until an investigation months later confirmed the work had been performed.
Board members expressed frustration that hiring policies were not followed and that HR had not been notified. One supervisor said those policies exist to ensure compliance with state and federal law and described the situation as a breakdown that required outside counsel. Dennis warned that failing to follow hiring processes can expose the county to wage claims, penalties and attorney fees.
Outside counsel for the board later clarified the board’s decision to provide back pay "in no way is any kind of a ratification ... of the decision to hire these individuals outside the normal process and without authorization," and noted the board had referred related conduct to the Arizona Attorney General for review.
The board approved the privilege waiver and the associated steps to address back pay. The motion was made and seconded on the record and carried by voice vote; the transcript records the motion as passing but does not record a roll-call tally in the minutes for this item.
What’s next: County staff and counsel will proceed with implementing the payments identified by the outside investigation and with follow-up actions described by the board, including the referral to the Attorney General for further review.
