Settlement with former Jeannette official includes repayment to city

Jeannette’s former community development director repaid nearly $7,000 to the city that she was mistakenly given after her retirement last year, according to a settlement agreement.

The issue was caused by an incorrect calculation in the city’s payroll department, giving Diana Reitz more money than she was entitled to for unused sick and vacation days. The same thing happened to a second former employee, who city officials said immediately returned the overpayment.

City officials requested in April a repayment from Reitz after issuing her an erroneous W-2 form in January stating that her wages for 2019 were $80,000, according to the agreement. Both parties agreed that her wages actually were $70,000 and that the repayment amount should be $7,747.

Reitz repaid the city $6,897 under the agreement. The Tribune-Review obtained a copy of it under the Right-to-Know Law. Her attorney Gary Falatovich declined to comment.

Reitz worked for the city for 40 years before retiring in August 2019 and then served as a part-time consultant through the end of 2019. She did not work under a collective bargaining agreement but was permitted to collect compensation for unused time in the same manner as unionized employees.

Mayor Curtis Antoniak said the payroll issue has been rectified and solicitor Tim Witt now reviews any similar payments to employees before they are distributed. Antoniak he was happy to get most of the overpayment back.

“Unfortunately, this situation cost the taxpayers a few thousand dollars between the city’s legal fees and the settlement fees,” he said.

The total amount of the agreement was $12,000, which includes taxes that were paid. The city approved it in September.

The agreement also included a provision requiring a request under the state’s Right-to-Know Law be filed to obtain a copy of it. Reitz and Falatovich were to be notified in the event such a request was filed and permitted time to object to it under the agreement.

“The parties hereto agree that, to the extent it is possible, this agreement shall not be released to the public,” it states.

Witt said the city is aware of its obligations under the Right-to-Know Law.

“Because of the requirements of the settlement agreement, we can’t provide any further comment at this time,” he said.

Melissa Melewsky, media law counsel with the Pennsylvania NewsMedia Association, said settlement agreements involving public agencies are public records, but she wasn’t surprised at the provision attempting to shield the agreement from public view.

“Settlement agreements often include confidentiality clauses despite the fact that they are unenforceable as a matter of law,” she said.

The provision requiring that Reitz and Falatovich be notified and have the opportunity to object to any requests interferes with the public’s right to access the document and the municipality’s obligations under the state’s Right-to-Know Law, she said.

“The clause is problematic and likely legally infirm for a number of reasons,” Melewsky said. “It cannot be used to thwart public access to the settlement agreement or to erect inappropriate barriers to access.”