Seattle Overpays 900 Police Officers $13.1 Million

A payroll error led to significant overpayments for members of the Seattle Police Officers Guild in June 2026.

Updated on Oct. 20, 2026 in Law Enforcement

Seattle Overpays 900 Police Officers $13.1 Million

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The city of Seattle overpaid 900 police officers a total of $13.1 million in June 2026 due to a miscalculation in a retroactive pay raise. The city discovered the error in mid-July 2026 after using 2020 base salaries instead of 2024 levels to calculate the 6% increase.

Why it matters

The overpayment caused the Seattle Police Department to exceed its 2026 budget authority by the full $13.1 million amount. City officials are currently negotiating with the police union to recover the funds, which have already been taxed.

The city of Seattle is working to recoup the $13.1 million in overpayments, which averaged $14,600 per affected officer. Officials plan to address the resulting budget shortfall through a supplemental budget ordinance.

The players

Seattle Police Officers Guild

This organization represents officers who are currently negotiating with the city to address the accidental salary overpayments.

Seattle Police Department

The local agency is managing the budgetary fallout after exceeding its 2026 financial authority due to the payroll error.

The details

The payroll mistake stemmed from applying a 6% retroactive raise to outdated 2020 base salary figures rather than the intended 2024 standards. Because the distributed payments were already taxed before the discovery, the recovery process requires complex coordination between the city and the labor union.

2020: Base salary year incorrectly used for raise calculation.
June 2026: City distributed the retroactive raise overpayments.
Mid-July 2026: City discovered the payroll error.
October 15, 2026: Mayor's office discussed recovery with media.

Legal Context

Municipalities typically rely on the supplemental budget ordinance process to correct accounting errors that cause agencies to exceed established spending limits. This incident follows established administrative protocols for reconciling payroll discrepancies within local government structures.

The $13.1 million budget shortfall impacts the city's broader financial health, as the department now faces a deficit that must be corrected. Residents may see officials prioritize recovery efforts as the city works to balance its books through ordinance adjustments.

The takeaway

Accounting errors involving retroactive pay adjustments can create significant challenges for municipal budgets and labor relations. Clearer verification of base salary data during payroll processing is essential to avoid costly overpayments.