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The Money Desk · Blog
Re:

Seattle City Workers Sue Over Alleged Payroll Errors After Workday Transition

Three Seattle employees filed a proposed class action alleging pay, overtime, leave, and benefit-record problems after the City moved payroll from EV5 to Workday. The claims remain unproven, and the City’s 2026 bond disclosure says the case is proceeding with liability, if any, indeterminate.
From TheFinanceBase Team3 min to read
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Three City of Seattle employees filed a proposed class action on February 7, 2025, alleging that payroll problems followed the City’s move from its long-running EV5 system to Workday. The claims include short or late pay, overtime and deduction errors, and inaccurate leave or benefit records. They remain allegations: the available sources do not establish that a court found the City liable or certified a class.

What the lawsuit alleges

The complaint, as described by GeekWire and summarized in a public release by the Seattle Police Officers Guild, says that the payroll transition led to wage-and-hour and benefit-record problems. The plaintiffs allege violations of Seattle wage and leave ordinances and other state laws. Those claims have not been established as court findings.

  • Some employees allegedly received short or late pay, or were not paid all wages on established paydays.
  • Overtime was allegedly unpaid or calculated incorrectly, and some pay rates or deductions were allegedly wrong.
  • The plaintiffs allege missing or inaccurate leave accruals, deferred-compensation or other benefit errors, and failures to provide required deduction notices.

The named plaintiffs are Nathaniel Hunter, an employee in the Drainage and Wastewater Department; Travis Stanley, an employee in the Fire Department; and Aaron Dalan, an employee in the Police Department. GeekWire described the City workforce as more than 13,000 employees in its 2025 coverage.

How the payroll transition fits in

The complaint coverage identifies September 3, 2024, as the date Seattle moved payroll functions from EV5 to Workday. EV5 had reportedly been in place for more than 30 years. The lawsuit alleges that problems arose after the change, but the existence of the lawsuit by itself does not establish that Workday caused each claimed error or that every City employee was affected.

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What the plaintiffs are asking for

The plaintiffs sought to represent City employees affected since the transition. Their requested relief, as reported by GeekWire and described in the Guild’s release, includes:

  • Certification of the case as a class action.
  • An accounting of wages and leave allegedly owed or lost.
  • Correction or replacement of the payroll system.
  • Payment or restoration of allegedly lost wages and leave, plus damages and attorneys’ fees.

These are requests, not outcomes. The sources reviewed do not establish that the court certified a class or ordered any of this relief.

What Seattle has said and the case status

When the suit was reported in February 2025, the City said it could not comment on active litigation. It also said large-scale transitions are challenging, that several critical issues had been addressed, and that teams were working on remaining problems while supporting employees through training and communications, according to GeekWire.

Seattle’s 2026 water revenue bond offering document says the proposed class action is proceeding and that the City’s liability, if any, is indeterminate. It describes the putative class as approximately 14,000 employees. The disclosure does not establish a certified class, a ruling on the claims, a settlement, or a final outcome. It is a brief status statement, not a detailed account of current court scheduling. The City’s 2026 bond offering document is the latest official case-status source identified here.

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A separate 2026 police pay dispute

In October 2026, reports described a separate dispute involving retroactive pay for more than 900 police employees. The City said it was seeking to recover about $13.1 million after a calculation used 2020 base rates instead of 2024 rates when determining a retroactive increase. KIRO 7 reported the Mayor’s statement that the City was “absolutely aiming to recoup that money,” while the police union said it wanted accurate calculations and bargaining over repayment. The City characterized this as a calculation error, not a Workday system error. KIRO 7’s report and The Seattle Times’ report describe this later matter.

That overpayment dispute is distinct from the 2025 class action. It should not be treated as proof of the lawsuit’s allegations, which concern claimed pay, overtime, deduction, leave, and benefit problems after the payroll transition.

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What employees should take from the claims

The case raises allegations about compensation and records, but it does not establish that a particular employee was underpaid or that the City owes a specific amount. Employees concerned about their own pay can compare pay statements with hours worked, overtime, deductions, leave balances, and applicable employment records, then raise discrepancies with their department’s payroll or human-resources staff. The lawsuit sources do not provide a verified individual-loss estimate or a court-approved claims process.

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