Overtime Lawsuits for Auto Insurance Claims Adjusters
Last Updated on March 22, 2021
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Case Update
- March 22, 2021 – Investigation Closed
- Thank you to everyone who helped contribute to this investigation. Unfortunately, at this point, attorneys working with ClassAction.org have decided to close their investigation into this matter. If you have questions regarding your rights, please reach out to an attorney in your area. Most offer free consultations.
The information below was posted when the investigation began and exists for reference only. Our open list of investigations can be found here.
At A Glance
- This Alert Affects:
- Auto insurance claims adjusters who were not paid overtime.
- What's Going On?
- Attorneys are speaking with auto insurance adjusters who use Colossus, ClaimIQ or similar claims processing software. They are investigating whether these workers are getting cheated out of overtime wages and whether they can file class action lawsuits against their employers.
- What's the Catch?
- There is no catch. There's no cost to talk to a lawyer and you're not obligated to file a lawsuit after speaking with one. Plus, federal law strictly prohibits employers from retaliating against employees who exercise their legal rights or report potential labor law violations.
Attorneys are investigating whether class action lawsuits can be filed on behalf of auto insurance adjusters who use Colossus or ClaimIQ and weren’t paid overtime.
They're looking into whether some insurance companies have misclassified these workers as “exempt” from overtime pay – meaning they’re not getting overtime when they should.
Overtime Exemptions and How They Apply to Claims Adjusters
According to The Fair Labor Standards Act (FLSA), overtime wages must be paid for every hour worked over 40 in a single workweek. Some employees are “exempt” from the overtime provisions of the FLSA, however, meaning that they’re not entitled to extra pay when working overtime. Insurance adjusters are typically “exempt employees” because they fit the description of “administrative professionals” under the Act.
It is suspected, however, that the administrative exemption does not apply to insurance claims adjusters who use Colossus, ClaimIQ and similar claims processing software and that these workers should be receiving overtime pay when working more than 40 hours per week.
The Administrative Exemption and Why It May Not Apply to Certain Insurance Adjusters
To fall under the administrative exemption – and therefore be disqualified from overtime pay – an employee must meet three specific criteria. While we believe insurance adjusters using claims processing software meet the first two criteria (which deal with pay and primary job duties), we do not believe they meet the third.
The third criteria states that an employee must exercise discretion and independent judgement. We believe that adjusters using software like Colossus and ClaimIQ do not meet this final criterion because the claims processing software essentially automates the entire process. As a result, we believe that these adjusters should be receiving overtime pay.
What Companies Are Under Investigation?
It is possible that the following companies use ClaimIQ, Colossus or similar claims processing software.
As a result, we want to hear from any insurance adjuster who works for:
- Allstate
- American Family
- American National
- Chubb
- CAN
- Erie
- Farm Bureau of Indiana
- Farmers Insurance
- Federated Mutual
- General Casualty
- Grange Mutual
- Hartford
- Horace Mann
- MetLife Home & Auto
- Motorist Insurance
- National Farmers Union
- Nationwide Insurance
- Ohio Casualty
- Pekin Insurance
- Royal
- Saint Paul
- State Auto
- Travelers
- Twenty-First Century
- United Farm Family Mutual
- Unitrin
- USAA
- USF&G
- Utica Mutual
- Wausau, Westfield Group
- Zurich
This list is not exhaustive.
To help determine whether lawsuits can be filed, the attorneys we work with would like to speak with anyone who works or worked as an insurance adjuster, used claims processing software like Colossus or ClaimIQ, and was not paid overtime.
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