California Unpaid Wages: Insurance Adjusters’ Class Action Lawsuit

California unpaid wages

Custard Insurance Adjuster Inc. is facing wage and hour class action lawsuit. The suit accuses the defendant of misclassifying its employees as exempt from minimum wage benefits. California unpaid wages class action lawsuit states the employer failed to pay workers for their overtime work.

The lead plaintiffs who filed the lawsuit and seek California unpaid wages are Perry W., Gerald S., Troy W., and Keith T. The allegations are over the violation of state and federal laws. The plaintiffs assert Custard Insurance Adjuster Inc. didn’t reimburse their overtime work expenses.

It’s worth noting that all the plaintiffs used to work as insurance adjusters for the defendant company. As a part of their job responsibilities, they had to drive to various locations quite frequently.

Details concerning California unpaid wages

The plaintiffs seeking California unpaid wages say they, as well as other insurance adjusters, worked about 40 hours on a weekly basis. Additionally, they had to work about eight hours per day, according to the complaint.

They usually drove to various locations to fulfill their job-related duties. However, the company refused to provide them with the reimbursement of travel expenses. The argument that Custard Insurance used was that the plaintiffs had exempt status. This means that they had no right to demand any reimbursement to cover their business expenses.

In addition to that, insurance adjusters had a very busy day. That’s why; very often they didn’t even have time for meal or rest breaks. It’s also essential to point out that the plaintiffs not only didn’t get their minimum wages but were also refused the payment for additional work hours.

When the employer didn’t agree to provide insurance adjusters’ with reimbursement of job-related travel expenses and overtime work, Walder and other lead plaintiffs made a decision of filing lawsuit for the California unpaid wages.

What the lawsuit seeks

The plaintiffs are seeking to represent a Class of all the insurance adjusters who worked for the company from October 4, 2013, till now.  The lead plaintiffs also seek the following: reimbursement for California unpaid wages. These include occupational costs and any other interest as well.

California labor laws

According to the labor laws of California, at present $10.50 is the minimum wage rate. This amount may grow during the next years. This means that all the employees, who work over 40 hours on a weekly basis, can get overtime pay (it is 1.5x the regular minimum wage).

Moreover, California labor laws require employers to provide non-exempt employees with reimbursement of job-related costs, like mileage on drives. It’s relevant to mention that employees also have the right to be paid for the missed meal and rest periods.

There are certain criteria that employees should comply with to be considered exempt from minimum wages. Among these circumstances are that employees must have a certain authority over other employees and receive payment on a salary basis. If employees have exempt status, in this case, employers don’t have to provide any payment for overtime work or reimbursement for their occupational costs.



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