Public radio station KHNS will be rewriting its personnel policy following settlement of an overtime claim that has cost the station an amount approaching $15,000.

The specifics of the settlement between the station and former news director Ed May are private, but board members this week said the conflict arose due to a misunderstanding of which employees are exempt from receiving overtime pay under state and federal labor law.

"We all assumed it was a salaried position," said Lynn Canal Broadcasting board member Sue Libenson. Under the policy re-write, only the station manager's position will be exempt from overtime.

May, in a claim that predated his dismissal from the station in late April by several months, said he deserved overtime for attending meetings and other functions after normal work hours dating back to soon after his hire in April 1999.

May presented to the board an apparently convincing argument he was entitled to overtime pay, as well as detailed compilation of extra hours worked. May served first as reporter, then as news director (a supervisory job), and claimed extra hours in both positions.

The station was unable to refute May's claim with its own accounting of his hours.

The station's attorney, Leslie Longenbaugh of Juneau, apparently advised the station to settle. The board unanimously agreed at a meeting Thursday. Chair Russ Lyman said the station will absorb the settlement with funds from its $75,000 reserve account.

The board approved transfer of $35,000 from the account to pay for the settlement as well as outstanding bills accrued during the administration of former manager Tom Willis.

The board also unanimously voted to appoint Laura Moscatello to its ranks, filling an at-large seat vacated by the resignation of Cynthia Williams. Moscatello is a seasonal Skagway resident who has volunteered at the station's Skagway studio. Moscatello was the sole candidate after other Skagway residents withdrew their names.

A permanent replacement will be elected at the station's annual fall meeting.

The board set its annual fundraising drive for June 24-30. The board hopes to raise $35,000 in the event this year, including increased participation from Skagway.

"Last year people in Haines were talking over people in Skagway on the radio. I think people in Skagway are feeling left out," Moscatello said.