Insurance Adjusters’ Class Action Seeks California Unpaid Wages

A recent wage and hour class action lawsuit has been filed against employer Custard Insurance Adjuster Inc., seeking alleged California unpaid wages.

This California wage and hour class action lawsuit was filed by a group of insurance adjustors alleging California unpaid wages in unpaid overtime rates and unreimbursed work expenses.

The lead plaintiffs filed this California wage and hour class action lawsuit on behalf of themselves and others similarly situated claim the company wrongfully classified them as exempt from minimum wage benefits.

Lead plaintiffs Perry W., Gerald S., Troy W., and Keith T. are alleging California unpaid wages, claiming defendant Custard Insurance Adjuster Inc. violated state and federal labor laws by misclassifiying them as exempt from basic employment law protections.

Each of the plaintiffs worked as an insurance adjuster for the company, and would regularly have to drive to different locations for their occupational duties.

Overview of California Unpaid Wages

The plaintiffs say they and other claim adjusters had to regularly work over 40 hours a week and would work over eight hours in a single work day.

Even though they would regularly drive out to different locations for their jobs, Custard Insurance allegedly failed to reimburse them for the travel expenses. The company argued the employees’ exempt status did not require reimbursement for business expenses.

Furthermore, the busy work schedule of the claimants and other claim adjustors allegedly meant regularly missed meal breaks and rest periods. In addition to the alleged minimum wage violations, the claim adjusters were paid a flat rate for on-call tasks instead of additional work hours being added to their paychecks.

Walder and the other lead plaintiffs opted to file legal action for the California unpaid wages violation after the company failed to reimburse them for any business related expenses or overtime rates.

They are filing the class action claim on behalf of themselves and others similarly situated, with the class period opening for California Custard insurance adjusters working from Oct. 4, 2013 to present.

Under California labor laws, the minimum wage rate is currently $10.50 and is expected to increase in the next few years. If an eligible employee works over 40 hours a week or over eight hours in a single work day, they are eligible for the overtime rate of 1.5x the regular minimum wage.

Employers must also reimburse non exempt workers for any occupational expenses including fuel refills and mileage on drives. In addition, any missed meal periods or rest breaks must be added to the employee’s paycheck.

Several circumstances must apply for an employee to be classified as exempt from minimum wage benefits, such as having a certain amount of authority over other employees and being paid on a salary basis. If an employee qualifies for exempt status, employers are not obligated to pay minimum wage rates, pay overtime rates, or reimburse any occupational expenses.

During the class period, claim adjusters allegedly received no overtime benefits or compensation for any overtime, rest periods, or work related expenses. The lead plaintiffs are seeking compensation for all missing California unpaid wages, including occupational expenses and any additional interest.

This California Wage and Hour Class Action Lawsuit is Case No. 4:17-cv-05840, in the U.S. District Court for the Northern District of California.