Custard Insurance Adjusters Accused of Violating California Work Laws

According to a recent employee rights lawsuit, Custard Insurance Adjusters has allegedly violated California work laws by reportedly failing to pay their employees for all hours worked and for not paying overtime wages.

Plaintiff Ray P. is leading the charge of this wage and hour class action lawsuit. Ray says he currently working for Custard Insurance and alleges the company violated California work laws when failing to pay him and other employees for all hours worked.

According to the class action wage and hour lawsuit, Ray began working for the company in May 2013 as a commission only insurance adjuster. This means that Ray’s initial payment schedule was not paid on a set hourly rate or salary, and his pay periods differed based on the amount of work he was assigned.

According to the claim, Ray’s compensation is based on a percentage of the amount received by Custard Insurance from clients for services rendered. However, on Jan. 1, 2018, Ray says Custard Insurance changed his compensation schedule to a set hourly rate.

Ray alleges that the client invoices do not reflect all hours worked or the duties he had performed while working with the client.

According to the claim, Ray regularly works over eight hours in a single workday and over 40 hours in a single week and is also on-call nearly every day, making him constantly available to follow Custard Insurance’s claims procedures.

In addition, Ray says he has to process claims and drive to and from claim sites for his job. Furthermore, Ray claims he is not compensated for being on-call, and allegedly none of these additional duties are reflected on his invoices.

He argues that his wage statements and pay records never accurately reflect the quantity of work or type of work performed, which causes him to miss out on rightly earned overtime.

Overview of California Work Laws

According to California work laws, non-exempt employees must be paid either the state minimum wage of $11.00 per hour or the federal minimum wage rate of $7.25.

Once a non-exempt employee works over 40 hours a week or eight hours in a single work day, they must be paid one and a half times their regular rate. In addition, employees must be provided a 30 minute meal break every five hours and a 10 minute rest period every four hours.

During these meal breaks, the employee must not perform any work and must be able to leave the worksite. If an employee is forced to work through these breaks, they must be compensated an extra hour of work on their paycheck.

Custard Insurance allegedly violated these California work laws by failing to pay Ray and other employees for all hours worked. Ray is filing this class action wage and hour lawsuit on behalf of other former and current Custard Insurance adjusters who have worked over 40 hours in at least one workweek over the last three years.

Along with seeking compensation for all hours worked, Ray also states that Custard Insurance failed to compensate employees for all missing meal breaks and rest periods.

This California Work Laws Lawsuit is Case No. 3:18-cv-04670-EDL, in the U.S. District Court of Northern 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.

Get a Free Case Evaluation Now