Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
APRIL 16, 2026
Subject
SUBJECT: AUDIT OF OVERTIME CONTROLS FOR METRO TRANSIT SECURITY OFFICERS AND SECURITY CONTROL SPECIALISTS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE Office of the Inspector General (OIG) Final Report on Audit of Overtime Controls for Metro Transit Security Officers and Security Control Specialists.
Issue
ISSUE
The Office of the Inspector General (OIG) conducted an audit of overtime controls for Metro Transit Security Officers (TSOs) and Security Control Specialists (SCSs). The objective of the audit was to assess whether overtime controls for Metro Transit Security Officers and Security Control Specialists are adequate and effective to ensure that overtime is properly authorized, accurately recorded, supported by legitimate operational needs, and compliant with Metro policies, labor agreements, and budgetary requirements.
Background
BACKGROUND
Transit Security Officers (TSOs) and Security Control Specialists (SCSs) work under Metro Transit Security (MTS), which operates within the Department of Public Safety (DPS), whose mission is to ensure that Metro patrons and employees can ride and work safely, without fear, at all times. DPS operates 24 hours a day, seven days a week, and is responsible for providing security and protection at Metro facilities and infrastructure.
MTS supports the safety and security of Metro’s transit system through field operations, monitoring, and coordination activities. These functions include patrol operations (mobile and foot), staffing fixed posts at designated Metro locations, enforcing the Metro Code of Conduct and fare compliance, supporting revenue protection efforts, providing escorts for General Services and Facilities Maintenance staff, and supporting special events. Due to the nature of these operational responsibilities, overtime is used to address staffing needs related to service coverage, special events, service disruptions, training, and unplanned employee absences.
The work rules and compensation for TSOs and SCSs are governed by the Collective Bargaining Agreement between Metro and the International Brotherhood of Teamsters, Local 911 (Teamsters). Section 8.1 of the Agreement states that “All employees shall be paid one and one-half (1 ½) times their straight time hours for all work they perform in excess of forty (40) hours per week, at their regular straight time hourly rate of pay.”
MTS uses the ETime system for employee timekeeping. The MTS timekeepers enter time and attendance information for MTS personnel into the system based on the rollouts. At the end of each pay period, timekeepers submit employee payroll records through ETime for review and approval by the appropriate supervisory staff.
Discussion
DISCUSSION
The audit found that overall, overtime controls for TSOs and SCSs were generally adequate and operated largely as intended. Policies and procedures governing overtime were in place, and timekeeping processes were generally consistent with labor agreement provisions.
However, the audit identified opportunities to strengthen oversight and compliance. Overtime expenditures exceeded the approved budgeted amounts in both FY 2024 and FY 2025. The OIG also noted instances in which employees exceeded the weekly overtime threshold of 32 hours, as well as situations in which operational demands affected compliance with meal-break requirements. In addition, overtime usage was concentrated among a limited number of employees, with 50 of 247 employees accounting for approximately half of total overtime hours in Fiscal Year 2025.
To mitigate excessive and costly overtime, management should implement a strategic workforce planning approach that prioritizes the review and timely filling of persistent vacancies in critical classifications. As noted in the 2016 Audit of Overtime Usage (16-AGW-P03, dated August 31, 2016) conducted by Management Audit Services, staffing levels were found to be inadequate, and many Transit Security Officers worked overtime on their regular days off due to personnel shortage. Management should reassess current vacancy rates and ensure that staffing levels are appropriately aligned with operational needs to reduce reliance on overtime.
Effective management of overtime is important to help mitigate employee fatigue, which may affect individual performance and overall operational effectiveness. Given the public-facing and safety-sensitive nature of Transit Security Officer duties, appropriate oversight of overtime usage supports both workforce well-being and the security of Metro patrons and employees.
OIG made recommendations to strengthen oversight of overtime authorization, monitoring, and reporting; enhance compliance with established thresholds and requirements; and improve coordination among scheduling, timekeeping, and management functions to support improved accountability over overtime usage and expenditures.
Given current fiscal constraints, it is imperative that all Metro departments operate within approved budgetary limits and significantly reduce reliance on overtime, an exceptionally high-cost staffing practice.
RECOMMENDATIONS
Department of Public Safety (System Security/Transit Security):
Finding A: Actual Overtime Cost Exceeded the Budget
1. Improve overtime budget development and controls.
2. Strengthen overtime monitoring and reporting.
3. Evaluate staffing levels and hiring strategies.
4. Develop a long-term workforce planning strategy.
Finding B: Overpayment/Underpayment of Overtime Due to Incorrect Earning Codes
5. Implement automated system controls in the timekeeping and payroll system.
6. Strengthen supervisor review and approval procedures.
7. Provide mandatory refresher training for timekeepers.
8. Enhance payroll review and monitoring controls.
9. Align policies and procedures with the CBA and communicate changes.
10. Perform periodic internal audits or spot checks.
Finding C: Weekly Overtime Thresholds Exceeded by Some Employees
11. Reinforce and communicate overtime policy requirements.
12. Implement a preventive overtime monitoring process.
13. Require documented justification and approval for all exceedances.
14. Integrate overtime controls into scheduling practices.
15. Perform periodic management review of overtime trends.
16. Establish accountability for non-compliance.
17. Assess fatigue and safety risks associated with high overtime.
18. Assess current vacancy rates and align staffing levels with operational needs.
19. Implement a strategic workforce planning approach that prioritizes reviewing and filling persistent vacancies in critical classifications to mitigate excessive and costly overtime.
Finding D: Overtime in Excess of 32 Hours per Week Without Prior Written Authorization
20. Reinforce the requirement for prior written authorization.
21. Implement automated alerts for employees approaching the 32-hour threshold.
22. Establish a standardized submission timeline and escalation process.
23. Require watch commander accountability for late or missing forms.
24. Centralize tracking and periodic review of authorization forms.
25. Provide refresher training on overtime processes for employees and watch commanders.
Finding E: Lunch Break Erroneously Included in Overtime Hours
26. Enhance employee training on overtime reporting.
27. Update standard operating procedures (sops).
28. Implement system validations in mts roll-out.
29. Reinforce supervisor review and approval.
Finding F: Overtime of 30 Minutes Due to Skipped Lunch Break
30. Strengthen staffing and coverage controls.
31. Reinforce policy expectations on meal breaks.
32. Enhance documentation requirements.
33. Implement monitoring and trend analysis.
34. Evaluate the need for additional training or guidance.
Finding G: Discrepancy in Reported Overtime Hours
35. Implement a formal reconciliation process.
36. Strengthen system interface controls.
37. Require documentation of manual adjustments.
38. Provide training to supervisors and payroll staff.
39. Perform periodic monitoring and quality assurance reviews.
40. Communicate corrections and provide feedback.
Finding H: Inconsistencies in Entering Overtime Hours in the Scheduling Software
41. Reinforce standardized time-entry protocols.
42. Provide targeted refresher training.
43. Implement validation or system controls.
44. Strengthen supervisory review.
45. Monitor and follow up.
Finding I: Overtime Sign-Up Discrepancies in the Rollout
46. Implement a standardized overtime sign-up workflow.
47. Automate tracking and updates where possible.
48. Introduce verification and audit checks.
49. Enhance communication with staff.
50. Provide training for roll-out management.
51. Conduct periodic review and continuous improvement.
Chief People Office (Talent Acquisition):
Finding J: Overpayment of Military Leave Pay
52. Recover overpayment.
53. Strengthen review controls.
54. Provide training and guidance.
55. Document lessons learned.
Equity_Platform
EQUITY PLATFORM
The results of this review could lead to positive equity outcomes should Metro implement the recommendations. By strengthening oversight of overtime usage, Metro can promote workforce well-being while safeguarding patrons and employees.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT through operational/administrative activities that will improve and further encourage transit ridership, ridesharing, and active transportation. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Recommendations support strategic plan goal no. 2: Deliver outstanding trip experiences for all users of the transportation system.
Next_Steps
NEXT STEPS
Metro management will implement the recommendations and corrective action plans.
Attachments
ATTACHMENT
Attachment A - Final Report on Audit of Overtime Controls for Metro Transit Security Officers and Security Control Specialists (Report No. 26-AUD-06)
Prepared_by
Prepared by: Asuncion Dimaculangan, Senior Auditor, (213) 244-7311
Yvonne Zheng, Senior Manager, Audit, (213) 244-7301
George Maycott, Senior Director, Special Projects, (213) 244-7310
Reviewed_By
Reviewed by: Karen Gorman, Inspector General, (213) 922-2975
