‘Intimidation Tactics’: Lawsuit Claims GEICO ‘Pressured’ Adjusters into Reporting Fewer Work Hours

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class and collective action claims Government Employees Insurance Company (GEICO) has “pressured” Region 1 adjusters into downplaying their number of hours worked, thus depriving them of both regular and overtime wages.

According to the case, although employees often put in 40 to 50 hours per week, GEICO, through “intimidation tactics and implied adverse employment consequences,” has coerced the adjusters into reporting no more than 7.75 hours of work per day. The suit says GEICO’s practices have violated both the federal Fair Labor Standards Act (FLSA) and Pennsylvania state law.

The plaintiff says she and other Region 1 automobile and/or residential damage adjusters I or II were paid a flat weekly salary or at an hourly rate intended to compensate them for 7.75 hours per day—i.e., from 8:00 a.m. to 4:30 p.m. with an unpaid 45-minute meal period—or 38.75 hours per week. In reality, however, the plaintiff often worked until 5:30 or 6:30 p.m. and on weekends in order to finish her work, the suit claims.

GEICO, according to the case, directed the plaintiff and other employees to enter only 7.75 hours of work per day on time records, and instructed supervisors to inform the workers that that amount of time should be “sufficient” for them to finish their jobs. Per the case, employees thus concluded logically that if they reported working more than eight hours per day, the additional hours “evidenced poor work performance.”

“Thus, GEICO created a company and class-wide policy and practice, reinforced by supervisors and GEICO company culture, that it was better for Plaintiff and other similarly situated Region 1 Adjuster’s career to stay quiet and allow GEICO to steal their hours/wages rather than speak up, complain about additional compensable work hours, and risk a poor workplace reputation, negative performance reviews, and risk additional negative workplace consequences,” the complaint relays.

The lawsuit alleges GEICO was aware that workers were putting in more hours than they were reporting, including overtime hours, yet refused to pay for every hour worked.

On some occasions, the case says, GEICO did approve adjusters’ additional hours, usually when the defendant directed them to service additional customers, yet paid them only for “some, but not all compensable hours worked.”

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s newsletter here.