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American Family Insurance Overtime Lawsuits: Wage & Hour Laws

American Family Insurance Overtime Lawsuits: Wage & Hour Laws

Commonly asked overtime pay law questions about American Family Insurance:

What Does American Family Insurance Do?

American Family Insurance Group is a Fortune 500 insurance company that deals in property, casualty and auto insurance primarily. The company also caters to commercial insurance, life and health insurance requirements.

Among other products, the company has investments & retirement planning options as well.

Who Does American Family Insurance Employ?

As of 2016, American Family Insurance employs 8,100 people, plus holds contracts with 2,800 independent contractor agents. Our experienced overtime pay lawyers handle cases for all American Family Insurance employees, including the following:

  • Investigators
  • Claim Adjusters
  • Property Damage Inspectors
  • Vehicle Damage Inspectors
  • Managers
  • Assistant Managers
  • Claims Representatives
  • Field Representatives
  • Call Center Employees
  • Customer Care Specialists
  • Inbound Sales
  • Actuaries

Where is American Family Insurance Located?

American Family Insurance’s national corporate headquarters is located in Madison, Wisconsin. The company has expanded to have satellite offices throughout the United States. Some of these locations include:

American Family Insurance Overtime Pay Lawsuit News

What are the Laws for American Family Insurance Employee Overtime Pay?

Under the Fair Labor Standard Act (FLSA), many American Family Insurance employees are considered non-exempt and therefore entitled to overtime pay.

If an employee is non-exempt under the FLSA, the law requires that they are paid overtime wages of one and one-half times their regular rate of pay for every hour past 40 in one week.

The FLSA has several exemptions, however, that would preclude employees from receiving overtime pay. For example, employees with “adminstrative” or “professional” roles may fall under these exemptions.

It is important to note that exemption is not determined solely based on job title. Rather, job description, job duties, rate of pay, and hours worked are used to determine if an employee should receive overtime pay.

On top of the FLSA, some states have their own overtime pay laws. These laws may complement or contradict the FLSA, so it is important to consult an experienced attorney who is familiar with all the applicable overtime pay laws.

Is an American Family Insurance Employee Entitled to Overtime Pay?

American Family Insurance Group employees often work long hours every week handling claims and assisting customers for the insurance company.  This is especially true when natural disasters occur or other events that give rise to a large number of claims at the same time. As a result, many American Family Insurance employees end up working more than 40 hours per week, and are therefore entitled to overtime pay.

Employees who are exempt under the FLSA are not entitled to overtime pay. Whether or not an American Family Insurance employee falls under the “administrative” or “professional” exemptions is determine based on job description, job duties, rate of pay, and number of hours worked.

Employers often deny or unlawfully refuse to pay overtime by misclassifying the positions of the workers, claiming that they are exempt when, in reality, they are not. For example, insurance investigators are generally not entitled to overtime pay. However, if an insurance investigator does not have job duties that involve discretion or decision-making, they may not fall under the FLSA exemption, despite their job title.

American Family Insurance may also require their employees to report to work early but not “punch the clock” until later or strike hours off of time cards, or they may refuse to pay employees for work done before the shift starts and after they punch out for the day. These are violations of the Fair Labor Standards Act (FLSA) and can give rise to an overtime pay lawsuit.

An experienced overtime pay attorney will be able to analyze your case in the context of the FLSA and your state’s laws to determine if you are due overtime wages from American Family Insurance.

Does American Family Insurance Have to Pay Overtime Wages to its Employees?

In many cases American Family Insurance is required to pay overtime wages to employees that work more than 40 hours in one week. This excludes employees who are considered exempt under the FLSA.

Exemption is not cut and dry; the FLSA is a complicated law and state laws can complicate the picture even further.

If you believe that American Family Insurance owes you overtime pay, it is best to consult an attorney who has experience with the FLSA and state overtime wage laws.

To determine whether you are eligible for filing a wage claim, contact our experienced American Family Insurance Overtime Pay Lawyers at (855) 754-2795 for a Free Consultation to discuss your case or complete the Free Unpaid Overtime Case Review Form on this page.  We will discuss your situation and determine if you have a claim. If you are owed unpaid wages, we will represent you under our No Fee Promise, which means there are never any legal fees or costs unless you receive a settlement.

Has American Family Insurance Been Involved in Overtime Pay Lawsuits?

Over the past several years, current or former employees have brought a number of lawsuits against insurance companies like American Family Insurance in an effort to reclaim lost overtime wages. If you believe American Family Insurance is denying you overtime pay, you may have a case similar to that of a previous lawsuit. Here are a few examples of such lawsuits:

  • Former Allstate claims adjusters allege the insurance giant violated California labor law when it failed to pay them for their off-the-clock and overtime work. The lawsuit claims managers underreported or did not approve overtime pay, thus leading to off-the-clock work without pay. The lawsuit also alleges that employee complaints or requests for overtime were seen as performance issues. The claims adjusters also alleged they missed meal breaks, for which they were not compensated, and Allstate failed to pay their wages in a timely manner.
  • Seven former Farmers Group employees brought their lawsuit on behalf of themselves and other claims adjusters, appraisers, and representatives who were allegedly denied compensation, including overtime, for all the hours they worked. The claims adjusters allege they were not paid for the time they were required to spend preparing for the day’s assignments prior to clocking in. According to their the, many essential responsibilities, such as inspecting vehicles in the field and determining if the damage is covered by policy, required preparation each morning.
  • A call center employee in St. Louis, Missouri, filed a proposed class action wage and overtime pay lawsuit in North Carolina federal court recently. The customer service representative claims National General Insurance Co., formerly GMAC Insurance, failed to pay its employees for time spent booting up their computer and their program, preparing for their shift, shutting down their computers, and reading company communications.

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