Overtime Lawsuits for Auto Insurance Claims Adjusters

Attorneys working with ClassAction.org 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. Before lawsuits can even be considered, however, the attorneys we work with need to speak to a few insurance claims adjusters to learn more about their jobs and how they’re getting paid. 

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.

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.

If any of these auto insurance companies are breaking the rules and regulations when it comes to overtime pay, their employees may be able to start a class action lawsuit. To learn more about this investigation and to find out if you have a case, get in touch with us today. One of the attorneys we work with may then reach out to you directly to explain how you could be owed unpaid overtime wages. 

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