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Court: No overtime pay for insurance adjusters
SAN FRANCISCO March 30, 2007 11:20am 
• Federal appeals court says they’re exempt employees • Says they fall under the ‘administrative exemption’ If you’re an insurance adjuster, forget about getting overtime.
The 9th U.S. Circuit Court of Appeals ruled Friday that “adjusters in this case are exempt.”
Ruling in a case involving adjusters for Farmers Insurance Exchange in Oregon, the federal appeals court for the West Coast says at issue “is the exemption for persons ‘employed in a bona fide . . . administrative . . . capacity.’”
The three-judge appellate panel says that “regardless of the type (personal injury v. property) or size (large v. small) of the claims they handle, the adjusters are required to do virtually all of the very things” that makes an employee exempt from getting paid overtime such as using discretion to determine whether the loss is covered, set reserves, decide who is to blame for the loss and negotiate with the insured or his lawyer.
About half of Farmers’ 10,000 employees are claim adjusters, the court notes.
Drilldown
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