The California Supreme Court is reviewing a case that could open doors for claims adjusters to receive back overtime pay. Claims adjusters filed against Liberty Mutual Insurance Co. claiming that under California wage laws they were eligible to receive time-and-a-half for hours over 40 worked in a week.
Administrative exemption: Court said Liberty has no proof of coverage In 2007, a district appeals court ruled that the adjusters' overtime claim was valid and that Liberty Mutual's use of the administrative exemption didn't cover the employees. The state district appeals court stated that,
"Reliance on a job title like 'claims adjuster' is no substitute...Plaintiffs primarily do production work, so they cannot be covered by the administrative exemption."
Now, the California Supreme Court is reviewing the case and is expected to reach a decision in the case later this year.
Are claims adjusters nationwide affected?
Yes. This is a class-action lawsuit and employees for this company and similar companies could be affected. If you are a claims adjuster, you may be owed overtime pay.
Are you a not receiving overtime pay as an insurance claims adjuster? There are two things you should do if you are a claims adjuster not receiving fair wages. First, order our free book,
The 10 Biggest Mistakes that can Hurt Your Wage and Overtime Claim, to learn how to take action.
Second, you can contact our wage attorneys to review your case for free at 1-888-449-2068.
Kennedy Hodges does not represent the case above, but we have recovered back pay for employees in all industries nationwide including the insurance, banking, and mortgage industry.
Category: Banking Industry
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