Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Arthur J. Gallagher & Co., a risk management and consulting firm, has agreed to pay $8 million to settle a class action lawsuit alleging the company misclassified its managers.
The class action lawsuit, filed in 2018, alleged Gallagher misclassified its client service managers as being exempt from overtime, meaning they were asked to work overtime without extra pay, according to Insurance Business.
The class action lawsuit also accused Gallagher of failing to provide appropriate off-duty meal breaks and of failing to pay wages due after employees were terminated.
Gallagher serves clients in more than 150 countries and employs nearly 30,000 advisors, according to the company website.
The settlement agreement estimates there are about 395 Class Members.
The Class is defined as all current and former employees of defendants with a client service manager position who were employed by the defendants in California at any time at any time between July 18, 2014, and Nov. 24, 2020, the date preliminary approval was granted, and who were classified as exempt from state and federal overtime compensation requirements while in a client service manager position during that period.
About $5.1 million will be left in the settlement fund after attorneys’ fees and other expenses are paid, according to the settlement agreement.
Class Members who do not opt out of the settlement will receive a proportional share of the fund.
To calculate how much payments will be, the defendants will determine the number of qualifying workweeks Class Members worked in positions designated as exempt during the Class Period.
The settlement administrator will then divide the value of the net settlement fund by the number of qualifying workweeks to determine a “workweek value.”
The defendants will determine the number of workweeks each Class Member worked, and the administrator will multiply this number by the workweek value in order to determine that Class Member’s individual payment.
Class Members who dispute their employment dates or number of qualifying workweeks on their settlement notice will be allowed to produce evidence that the information is not accurate.
Has your job position ever been misclassified? Did you receive the pay you were entitled to? Tell us about your experience in the comment section below.
The plaintiffs are represented by Jason M. Frank and Scott Sims of Frank Sims & Stolper LLP.
The Gallagher Manager Misclassification Class Action Lawsuit is Pamela R., et al. v. Arthur J. Gallagher and Co., et al., Case No. 2:18-cv-06227, in the U.S. District Court for the Central District of California.
Read About More Class Action Lawsuits & Class Action Settlements:
3 thoughts onConsulting Firm Gallagher Agrees to $8M Settlement over Employee Misclassification Claims
Please add me
I also gotten a letter
Please add my name. Letter recd’.
Please add me