GEICO Forced to Pay Overtime After Court Rejects Insurer’s Appeal

GEICO Forced to Pay Overtime Claims After Supreme Court Rejects Auto Insurer’s Appeal

RICHMOND — Six years after first filing their class action unpaid overtime lawsuit, insurance claims adjusters may finally see a payout for their back pay denied by their employer. The development comes after the U.S. Supreme Court declined to hear an appeal by the defendant, GEICO General Insurance Co.

GEICO sought relief from a decision handed down by the 4th U.S. Circuit Court of Appeals in Richmond, Virginia in July 2015 finding the plaintiffs were not overtime exempt employees as the defendant classified them. That 2015 ruling made the plaintiffs for overtime payments and other wages denied by the nation’s second largest insurance company.

The Appeals Court ruling was significant because it determined the plaintiffs were not actually performing management duties required to make them overtime exempt under federal wage and labor laws. While state and federal statutes do allow employers to place employees on salary pay and make these individuals overtime exempt, the employee’s’ duties must align with job descriptions under those laws.

Even before the 2016 Supreme Court and 2015 Appeals Court rulings, a federal District Court already struck down GEICO’s questionable business practice of classifying employees who should otherwise earn hourly wages and overtime as noncompliant with federal wage laws. In 2012, a federal judge in Maryland handed down a $3 million award for the plaintiffs, despite GEICO’s insistence it acted in good faith to comply with federal labor laws.

How Do I Know if I am Overtime Exempt?

Under the Fair Labor Standards Act (FLSA), it is not simply enough for an employer to classify an employee as a “manager” or “executive” to make an employee overtime exempt. The U.S. Department of Labor expects these overtime exempt employees to perform at least some of the many job duties it requires workers to do in order to meet the requirements of a job description.

Actions, and not job titles alone, are what determine whether or not an employee may be classified as overtime exempt. Individuals who have questions about their overtime exempt status and recovering back pay should contact an experienced unpaid overtime lawsuit attorney to discuss their case.

Class Action Overtime Payment Attorneys

Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.

Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.

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