Ninth Circuit Hands Insurance Adjusters a Defeat in FLSA Action
A Ninth Circuit ruling on an overtime case was a deep disappointment to employment plaintiffs lawyers on Thursday. The Court's late-October ruling reversed a $52.5 million judgment awarded to Farmers Insurance Exchange claims adjusters who alleged that they had been misclassified as exempt and denied overtime. See In Re Farmers Insurance Exchange, Claims Representatives' Overtime Pay Litigation, ___ F.3d ___, 2006 U.S. App. LEXIS 26671 (9th Cir. Oct. 26, 2006). The Ninth Circuit held that Farmers' claims adjusters, handling claims such as automobile damage claims, property damage claims, personal injury claims and combinations of these, were all exempt from the overtime requirements of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq.If this case stands up under en banc review, it will certainly encourage plaintiffs to file such cases exclusively in California state courts utilizing the state's more favorable state laws.
Here is a link to the opinion.Here is an article on the decision at Law.com. Texas Overtime
