(855) 263-3525

Highmark Overtime Settlement Approved

PHILADELPHIA — Highmark Inc., a health insurer, received approval for its confidential settlement agreement in a Pennsylvania federal court. The settlement concludes an overtime wage lawsuit between the company and a group of its former supervisors. The former supervisors claimed they were intentionally misclassified as exempt so the company would not have to pay them overtime. The settlement agreement was the result of mediation and will provide relief to the former supervisors more quickly and at a significantly lower cost than taking the case to trial.

The Supervisors’ Claims

The supervisors were mid level employees who oversaw various functions at Highmark’s call centers. The lead plaintiff, Jacqueline Rummel, was a former customer service unit supervisor with Highmark. The unit she supervised was part of the company’s health plan operations department. As part of her responsibilities, Rummel claims she monitored customer services representatives for company policy compliance and performed other duties such as determining who to hire and who received bonuses. Even though she had authority to make some hiring and pay decisions, Rummel claims she had no independent discretion over the matters. She claims supervisors, like herself, were under the control and decision making authority of the managers, directors, and the vice president of Highmark’s health plan operations, so they did not actually have independent decision making authority.

According to the lawsuit, Rummel believes she and dozens of supervisors were intentionally misclassified because the company knew the supervisors did not have actual managerial authority. Rummel initially filed her claim under the Pennsylvania Minimum Wage Act (PMWA), but later amended her claim to include the Fair Labor Standards Act (FLSA) when Highmark argued that the PMWA would not allow the lawsuit to continue.

Amending Claims

Even when you know your employer has violated a labor law, it may sometimes be difficult to collect enough evidence to have a clear picture of what laws were violated or if you can seek relief under those laws. For this reason, the court allows plaintiffs to amend their complaints, within specific guidelines. In many situations both state and federal laws apply to labor law violations. Occasionally one set of laws will allow plaintiffs an avenue for relief that the other does not. In this case, Rummel was originally only bringing a claim of state labor law violations; but, when Highmark indicated that the state law might not allow Rummel’s claim to go forward, she added the FLSA violation, which has different requirements and standards.

If you believe your employer has denied you proper overtime pay, our top rated overtime pay lawyers can help you navigate the potential avenues of relief available to you. Call our experienced team of overtime pay lawyers today at (855) 754-2795 or complete the Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.

Text Now For Free Case Review