Review exempt/nonexempt status in wake of court decision on administrative exception

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in Management Training

Good news for employers: The Court of Appeal of California has found that claims adjusters are exempt administrative employees not entitled to overtime. The court rejected the notion that all claims adjusters who work for insurance companies are nonexempt employees without regard to the work they actually perform.

Although this decision directly involved the insurance industry, it has important implications for employers throughout California. It means employees in other industries will now find it harder to argue that they do not qualify for the administrative exemption if they perform work their employer was established to provide.

Recent case: Kenneth Hodge brought a class-action lawsuit on be­half of claims adjusters employed in California against the national risk management firm Cambridge Inte­grated Services. The suit challenged the adjusters’ exempt classification, arguing they should be nonexempt and eligible for ov...(register to read more)

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