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California Supreme Court clarifies administrative employee exemption

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in Human Resources,Overtime Labor Laws

by Robert A. Jones, Esq.

The California Supreme Court has issued a long-awaited decision in a case addressing the “administrative/production worker” dichotomy in determining if an employee meets the requirements for the administrative employee exemption from overtime under the California Wage Orders.

In a limited but unanimous opinion, the state’s high court reversed and remanded a lower court ruling that held that certain insurance company claims adjusters are not exempt employees. Thus, they were entitled to overtime compensation under the California Labor Code and regulations of the California In­­dustrial Wel­­fare Commission (IWC). The case is Harris v. The Superior Court of Los Angeles County (No. S156555, Supreme Court of California, 2011).

Exempt or not?

A group of claims adjusters em­­ployed by Liberty Mutual Insur­­ance and Golden Eagle Insur­­ance filed four class-action lawsuits (later consolidated into one suit)...(register to read more)

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