Unpaid Overtime Lawsuits for Insurance Investigators
Last Updated on March 22, 2021
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter.
Check back for any potential updates. The information on this page is for reference only.
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Case Update
- March 22, 2021 – Investigation Closed
- Thank you to everyone who helped contribute to this investigation. Unfortunately, at this point, attorneys working with ClassAction.org have decided to close their investigation into this matter. If you have questions regarding your rights, please reach out to an attorney in your area. Most offer free consultations.
The information below was posted when the investigation began and exists for reference only. Our open list of investigations can be found here.
At A Glance
- This Alert Affects:
- Insurance investigators who weren't paid overtime.
- What's Going On?
- Attorneys have reason to believe that current and former insurance investigators weren't paid proper overtime. They have reason to believe these workers may be able to file class action lawsuits.
- How a Class Action Can Help
- Insurance investigators may be able to collect up to three years of unpaid overtime pay. A successful lawsuit could also require companies to change their pay practices for future employees.
- Can I Get Fired for Speaking Up?
- Federal law strictly prohibits companies from retaliating against employees simply because they've exercised their legal rights.
What’s Going On?
A number of lawsuits have been filed against insurance companies over allegations that they’re not paying their investigators properly. GEICO has already been sued – and now courts are beginning to rule in favor of the investigators, helping them recover several years of unpaid overtime wages.
What We’re Doing About It
Attorneys working with ClassAction.org believe more lawsuits can be filed. To help with their investigation, they need to speak with insurance investigators who weren’t paid overtime.
If you’d like to learn more about the investigation – and whether you may be able to make a claim for unpaid wages – fill out the form on the page. After you get in touch, one of the attorneys handling this investigation may reach out to you directly. There’s no cost to speak to someone and you’re not obligated to take legal action simply because you’ve contacted us or talked to an attorney.
How Are Insurance Investigators Supposedly Getting Cheated Out of Overtime Pay?
It is believed that some insurance companies are classifying their investigators as “exempt” – or ineligible to collect overtime pay – when they shouldn’t be. Basically, to be “exempt” from overtime pay under federal law, an employee must meet certain criteria regarding both their job duties and salaries. Lawsuits have alleged that some insurance companies are misclassifying insurance investigators as “exempt administrators” even though they don’t meet the criteria.
Administrative Exemption: Why Lawsuits Claim Insurance Investigators Don’t Qualify
To be a true “exempt administrator” who isn’t owed overtime, the employee must perform work directly related to management or general business operations of the company or its customers. A 2015 court ruling found, however, that insurance investigators don’t meet this requirement.
Why Not?
The ruling noted that work that would meet this requirement involves areas such as finance, safety and health, quality control and marketing – and even referenced a part of the law that states the exemption does not pertain to those conducting investigations, interviewing witnesses or performing similar work.
Furthermore, the court found that insurance investigators’ work pertains more to the carrying out of the businesses’ day-to-day affairs – rather than the general operation of the company – and that, as a result, insurance investigators should earn time-and-a-half wages for their overtime hours.
How a Class Action Lawsuit Can Help
A class action lawsuit could help misclassified insurance investigators collect money for their unpaid overtime. Furthermore, a court could require companies in violation of the law to change their wage and hour practices so that future employees are protected.
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