State Farm Insurance Cos. has agreed to pay $135 million to settle a lawsuit
accusing the company of incorrectly classifying 2,600 claims adjusters as exempt
from overtime, the Los Angeles Times reports.
State Farm had argued that the calims adjusters were covered by an exemption
for administrative employees.
The newspaper notes that in general, California's overtime rules are stricter
than federal rules. California's exemption rule requires a higher salary, has
stricter duties requirements, and has a 50 percent time requirement for the
primary duty test.
When the newspaper contacted the company, a spokesperson confirmed the settlement
but declined further comment.
An attorney for the plaintiffs tells the newspaper that the average award for
each of the plaintiffs would be about $34,000.