Assurant, Subsidiaries Sued Over Alleged 'Misclassification Scheme,' Unpaid OT

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Insurance company Assurant, Inc. and three of its subsidiaries are facing a proposed collective action in which two appraisers accuse the defendants of perpetuating a “misclassification scheme” that deprives employees of overtime compensation.

The plaintiffs were hired as residential real estate appraisers by the defendants and allege they were misclassified as exempt employees. The suit argues that the plaintiffs should have been classified as non-exempt from overtime requirements under the Fair Labor Standards Act (FLSA), as their duties did not include managerial tasks, the exercise of independent judgment, or any other responsibilities that would have granted them significant control of the business.

The appraisers, who were compensated with a base salary and non-discretionary bonuses for exceeding productivity goals, allege they were deprived of proper overtime wages owed to them under the FLSA. According to the complaint, “tight production deadlines, high quality standards, customer scheduling constraints, demanding workloads, and fear of discipline” pushed the plaintiffs to work “far in excess” of 40 hours each week, for which they did not receive proper time-and-a-half pay as misclassified employees.