Companies Consistently Misclassify Claim Adjusters to Avoid Overtime Pay. Fight Back!! – Los Angeles Wage & Hour Claims Attorneys Blumenthal, Nordrehaug & Bhowmik

by Norman B. Blumenthal on October 16, 2012

In Harris v. Superior Court, on remand from the California Supreme Court (CSC), the California Court of Appeals has held that claim adjusters are non-exempt employees and therefore entitled to overtime pay.  Previously, using two regulations by California's Industrial Welfare Commission, a trial court held that claims adjusters were eligible for overtime depending on whether they filed their claims before or after October 2000. On appeal, the Appellate Court held that all claim examiners were eligible for overtime.  The CSC then overturned the Appellate Court decision because it was not based on the “correct legal standard

On remand, the Appellate Court correctly focused on the administrative exemption to California's overtime requirements, noting that to be exempt from overtime, an employee must be primarily engaged in work “directly related to management policies or general business operations.”   Since the work performed by claim adjusters did not "directly relate' to management policies or general business operations, claim adjusters are entitled to overtime.   Harris v. Super. Ct., ___ Cal. App. 4th ___ (Cal. Ct. App. 2012)

Blumenthal, Nordrehaug & Bhowmik is a California employment law firm with offices located in San Diego, San Francisco and Los Angeles. The firm dedicates its practice to contingency fee employment law work for issues involving overtime pay, wrongful termination, discrimination and other California labor laws.  If you are a claims adjuster, or an employee being misclassified as exempt from overtime pay, contact Blumenthal, Nordrehaug & Bhowmik for a free confidential consultation by calling (800) 568-8020.

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