$4.9M Deal Approved in Farmers Insurance Missed Break Time, Wages and Overtime Suit

Farmers Insurance Exchange has agreed to pay $4.9 million to end a nearly two-year dispute with a group of claims adjusters who accused the company of violations of California labor laws including missed break time, wages and overtime pay.

Once attorneys’ fees and settlement costs are taken out, the remainder of the $4.9 million settlement fund will be divided among the 2,114 plaintiffs who allege Farmers Insurance

The Class includes all California claims adjusters who specialize in liability, automotive damage and residential property who worked for Farmers Insurance between Sept. 2011 and Aug. 2016.

Each plaintiff is expected to receive on average $2,000 but Class members who worked longer may be compensated more than $7,000.

U.S. District Judge William Orrick gave the final approval, noting the case was “hard fought” and the settlement terms were fair.

“You are getting good money for the class members in what was a difficult case,” Judge Orrick said. “You are to be congratulated. From the number of times I saw you, and the emphasis with which you made your arguments, I know how hotly argued and hard fought this was.”

The California wage and hour lawsuit was initially filed in Feb. 2014 by by claims adjusters seeking to obtain compensation for missed break time, wages and overtime pay.

Among the allegations in the complaint are that before 2015, Farmers failed to comply with state labor laws by providing a meal and rest break policy to ensure workers were able to report any missed break time, wages and overtime owed.

This practice only fostered competitiveness among employees and increased work volume demands, according to the plaintiffs, and resulted in claims adjusters regularly working overtime and missing breaks.

“…Plaintiffs sought certification of their claims for unpaid overtime and missed meal and rest breaks, unfair competition under the UCL, and statutory and civil penalties based on their belief that Farmers has class wide policies and practices that led to off-the-clock work and missed breaks,” court documents states.

Farmers Insurance denies any wrongdoing in the case and states its policies regarding missed break time, wages and overtime comply with California labor laws.

CA Labor Law Violations:  Missed Breaks, Wages and Overtime

Employees working for employers that operate their businesses in the State of California are entitled to workers’ rights, especially with regard to matters concerning the state’s labor laws.

Under California labor laws, overtime pay is based on hourly wages, salaries, shift differentials, non-discretionary bonuses and commissions. Failure to include those when determining overtime pay is an overtime violation.

In California, most workers are entitled to overtime for all work past eight hours in a day or 40 hours in a week, or for work performed on a seventh consecutive day.

Meal and rest break violations. Labor laws in the state of California also prohibit employers from putting pressure on employees to shorten, interrupt, or work through their meal periods. California labor laws also prohibit employers from requiring employees to work during meal or rest periods.

For example, if an employee has been working for more than five hours in a single workday, he or she is entitled to one 30-minute meal period or a 10-minute break for every 4 hours worked. A penalty of an additional hour of pay at a regular rate must be given by employer for every day it failed to provide a meal or rest break.

If you feel that your employer has violated state or federal employment laws, you may qualify for damages that may be awarded in a possible wage and hour class action lawsuit or civil action lawsuit.

The Missed Break Time, Wages and Overtime Class Action Lawsuit is Alvarez et al v. Farmers Insurance Exchange et al., Case No. 3:14-cv-00574, in U.S. District Court for the Northern District of California.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

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