The City of Seattle accidentally distributed $13.1 million in surplus wages to 900-plus Seattle Police Department staff. This error occurred because officials applied outdated 2020 wage rates rather than current 2024 figures to calculate retroactive raises.
The 2020 wage rate error that cost $13.1 million
The financial discrepancy stemmed from a failure to use the correct baseline for a 6% retroactive pay increase. According to KIRO Newsradio, the City of Seattle used base pay rates from 2020 instead of the 2024 rates to determine the amount owed under the Seattle Police Officers Guild (SPOG) contract.. Because the 2020 rates were lower, the resulting calculation for the retroactive difference created payments that were significantly larger than they should have been.
These erroneous payments were issued in paychecks on June 12, though the mistake was not identified until mid-July. the City Budget Office discovered the issue after the Seattle Police Department flagged a gap between its actual spending and its projected budget for retroactive pay. the city has since informed the city council of the error and aimed to notify the affected staff by September 30.
SPOG grievances and the $20,000 repayment burden
The Seattle Police Officers Guild (SPOG) has already filed a batch grievance on bhealf of the officers who received the excess funds. sPOG president Kent Loux stated that the guild is not attempting to keep money its members are not entitled to , but is focused on ensuring that the repayment figures are accurate. Loux also noted that the union is seeking to resolve existing underpayments that remain outstanding.
The recovery process is complicated by the fact that different unions are involved. While most affected staff are represented by SPOG, some belong to the Seattle Police Management Association or Teamsters 117. As reported by KIRO Newsradio, the city must now bargain with SPOG to determine the terms of repayment. This is particularly pressing given that some officers may be required to return between $10,000 and $20,000, creating a sudden and significant financial burden for individual employees.
A $13.1 million slip during a $175 million budget crisis
This payroll failure occurs against a backdrop of severe municipal financial instability. The overpayment of $13.1 million has pushed the Seattle Police Department's 2026 expenses above projections,necessitating a year-end supplemental budget proposal to the city council. In the short term, this error effectively removed $13.1 million from the general fund that was intended to support the proposed 2027-2028 budget.
The timing of the error is particularly contentious given that Seattle is currently facing a $175 million budget hole. This pattern of administrative oversight echoes broader concerns regarding the city's fiscal management. Critics argue that the same standard of recovery should apply regardless of the recipient; for instance, the city would likely demand immediate repayment if a non-profit like Community Passageways had been overpaid by a similar margin.
Who is accountable for the City of Seattle's payroll failure?
A central unresolved question is which specific official or department head is being held responsible for the mistake. The city has clarified that the error was not a technical glitch caused by its payroll system, Workday, but rather a human or procedural error in the calculation process. Despite the scale of the $13.1 million mistake, the city has not yet named an individual accountable for the oversight.
To prevent a recurrence, the City of Seattle is implementing a new mandatory approval chain. All future retroactive payments must now be vetted and approved by the City Budget Office, the Office of City Finance, and the relevant department. Additionally, the Office of City Finance is updating its official payroll manual to codify these new requirements.
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