Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
November 09, 2006
Appeals Court Reverses Overtime Ruling

The U.S. Court of Appeals for the 9th Circuit has ruled that 2,000 claims adjusters for Farmers Insurance Exchange are exempt from the overtime requirements under the federal Fair Labor Standards Act (FLSA).

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

In a lawsuit, claims adjusters in Colorado, Illinois, Michigan, Minnesota, New Mexico, Oregon, and Washington alleged that the company misclassified them as exempt from the FLSA. A district court ruled that some of the claims adjusters were exempt and some were nonexempt, using a "$3,000 in claims paid per month" rule to determine the workers' status.

The appeals court reversed the district court's ruling that some of claims adjusters are nonexempt, saying the Department of Labor's overtime exemption does not distinguish between adjusters based on the type of value of the claims they handle.

"We hold today that all of the adjusters in this case are exempt," the appeals court wrote. "If the Department of Labor should choose to distinguish between adjusters based on the type or value of the claims they handle, it is free to amend the regulations and tell employers how to do that."

The court cited 29 CFR §541.203, which states that "insurance claims adjusters generally meet the duties requirements for the administrative exemption, whether they work for an insurance company or other type of company, if their duties include activities such as interviewing insureds, witnesses and physicians; inspecting property damage; reviewing factual information to prepare damage estimates; evaluating and making recommendations regarding coverage of claims; determining liability and total value of a claim; negotiating settlements; and making recommendations regarding litigation."

The court said the claims adjusters in the case met those duties requirements.


Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2017 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: