The parties hereby stipulate as follows:

1.                  Class Certification.  Additional class representatives may be named as directed by the court.  An Order Certifying a Class in substantially the same form as Exhibit A, attached, shall be entered after the class representatives are determined and following resolution of two issues that could not be resolved by stipulation of the parties:  (1) whether State-paid elected officials are included or excluded from the class; and (2) whether putative class members will be required to “opt in” in order to be eligible for relief in this case.  A hearing to resolve those issues is scheduled for April 20, 2000.

2.                  Notice.  The State shall give notice, at the State’s expense, to putative class members after the Order Certifying a Class is entered.  The form and manner of giving notice shall be subject to the approval of the court.  If the parties cannot agree on the form and manner of notice, the court will resolve the dispute.

3.                  Submission of Claims.  Class members who wish to make a claim for compensation under ORS 279.340 for working overtime during the relevant period shall submit a completed Claim Form within the time and in a form to be established by the court.  Any disputes over the form of the Claim Form or the time for submission of claims shall be resolved by the court.  This process shall not preclude class counsel from seeking relief (or the State from opposing relief) on behalf of class members who do not submit a Claim Form.

4.                  Claim Processing.  Claims shall be processed pursuant to a Claim Administration Process to be approved by the court.  The parties agree that the Oregon Survey Research Laboratory (OSRL) shall be specially appointed by the court (at the State’s expense, pursuant to the terms of a contract to be negotiated between the State and OSRL) to assist in the Claim Administration Process.  The Claim Administration Process will result in a recommended determination for each class member.  Any dispute over the details of the Claim Administration Process will be resolved by the court.

5.                  Objections.  Employer and employee shall have 30 days to serve any objections to the recommended determination.  If no timely objection is made, the recommended determination shall become final.  Thereafter, the claim shall be paid, either in cash (subject to usual withholdings for taxes, etc.), or as compensatory time off (“comp time”) in accordance with further directions of the court.  “Comp time” shall be granted in lieu of cash only if the employer and employee agree to compensation in the form of “comp time.”

6.                  Mediation and arbitration.  If either employer or employee object to the recommended determination, the parties shall attempt to resolve the dispute through mediation if mediation is requested by employer.  If the dispute is not resolved through mediation, the dispute shall be resolved through arbitration, by an arbitrator specially appointed by the court.  The cost of the mediation and arbitration shall be paid by the State.  The arbitrator shall be selected by mutual agreement of the parties.  If the parties cannot agree on an arbitrator, the arbitrator shall be chosen as follows:  (a) the State shall provide a list of seven proposed arbitrators, selected at random from the approved list of arbitrators maintained by the Employment Relations Board; (b) each side will strike one name from the list, and continue striking names, until one name is left; (c) the last remaining name shall be the arbitrator.  The parties shall have a reasonable opportunity to conduct discovery, governed by the Oregon Rules of Civil Procedure, before any arbitration proceeding.  The arbitrator’s decision on issues of fact shall be final without any further review or right of appeal.  The court will resolve any dispute over the selection of the mediator and/or arbitrator, and will determine any legal issues that may arise in connection with any disputed claim.  Legal determinations by the court shall be subject to further review on appeal in accordance with Oregon law.

7.                  Attorney fees.  Class counsel shall submit any request for attorney fees under ORCP 32N before the time for submission of timely claims expires.  A hearing on the procedures for class-wide relief and attorney fee claim shall be held at a reasonable time after notice to putative class members is given.  The percentage of any attorney fee award shall be determined before any claims are paid.  Whatever percentage is awarded shall be deducted from each payment to class members and tendered directly to class counsel.

            It is so stipulated:

_______________________________                _______________________________

John Hoag                                                              Stephen K. Bushong

The Law Office of John Hoag, PC                          Assistant Attorney General

Attorney for Plaintiffs                                              Attorney for Defendant