Mount Vernon Agrees to $65,000 Settlement With Former Police Chief in Federal Lawsuit

MOUNT VERNON, AL (BuzzReport)— The Town of Mount Vernon has agreed to pay its former police chief, Eric Pettway, $65,000 to resolve a federal lawsuit alleging unpaid overtime wages and retaliation, bringing an end to one portion of a legal dispute that has drawn attention to the town’s employment practices.

Attorneys representing both Pettway and the town jointly filed a request Tuesday asking a federal judge to approve the proposed settlement. While the agreement resolves Pettway’s claims under the Fair Labor Standards Act, the town does not admit any wrongdoing and maintains that the settlement was reached as a compromise to avoid continued litigation.

Pettway filed the lawsuit after alleging that Mount Vernon failed to compensate him for overtime hours worked during his tenure as police chief. He also claimed that he was terminated after raising concerns about the town’s alleged failure to properly pay overtime, arguing that his dismissal amounted to unlawful retaliation.

In addition to the wage-related allegations, Pettway’s lawsuit asserted that Mayor Eric Peoples and Councilman James May pressured him to increase traffic enforcement, including issuing more citations to white motorists who worked in Mount Vernon but lived outside the town. Those allegations became one of the more closely watched aspects of the case but were not addressed by the settlement agreement.

According to court filings, Pettway originally sought approximately $194,187 in damages, including unpaid overtime wages, back pay, and other compensation. Under the proposed settlement, he will receive $65,000, representing roughly one-third of the amount he initially requested. The settlement covers both his overtime wage claims and his retaliation allegations.

The town also agreed to pay an additional $810 to cover litigation expenses and $10,500 in attorneys’ fees, separate from the settlement awarded to Pettway.

Pettway alleged that he regularly worked well beyond the standard 40-hour workweek while serving as police chief. Court records indicate he claimed to have worked an average of 1,095 hours of unpaid overtime, contending that he should have been compensated at an overtime rate of $46.16 per hour based on his regular hourly wage of $30.77.

Mount Vernon strongly disputed those claims throughout the litigation. The town argued that Pettway failed to maintain accurate time records as required under his employment contract and contended that he made changes to his time records after the fact. Court filings also state that town officials maintained Pettway had several methods available to accurately report his work hours but failed to properly document the overtime he later claimed.

The town further asserted that payroll records show Pettway received more than $12,000 in compensatory time during his employment and an additional $6,000 after his termination, disputing his claim that he was owed compensation for more than 1,000 hours of unpaid overtime.

If approved by U.S. District Judge Kristi DuBose, the agreement will also require the Town of Mount Vernon to request that the Alabama Peace Officers’ Standards and Training Commission amend Pettway’s employment record to reflect that he left his position in good standing.

Although the federal lawsuit appears headed toward resolution, Pettway’s legal battle with the town is not over. His separate breach-of-contract lawsuit remains pending in Mobile County Circuit Court and is unaffected by the federal settlement.

The proposed agreement will become final only after receiving approval from the federal court.