Overtime Lawsuits On The Rise

Ricky Bagolie

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Workers whose employers fail to properly pay them the overtime they deserve may be able to file an overtime lawsuit. Generally, all workers are eligible for time-and-a-half overtime, except for those in the executive, administrative and professional categories. Changes in federal regulations in 2004 defined more clearly those exempt categories by using new job descriptions such as "exercises discretionary and independent judgment." The change was made because language such as "holds a position of responsibility" was deemed too vague.

Accorsing to Chron.com,

Last year, State Farm Mutual Automobile Insurance Co. reached a $135 million settlement with claims adjusters, who said they had not received overtime pay, in violation of California law. Allstate Insurance Co. agreed to pay $120 million in a similar suit last year in California. In both cases, adjusters said they have been wrongly classified as exempt.