E-Alert Item: DOL Says Insurance Adjusters Not Entitled to Overtime Pay

The federal Department of Labor has said in a recent opinion letter, which was issued in response to an insurance industry group’s inquiry, that adjusters qualify for the administrative exemption from overtime under the Fair Labor Standards Act. The opinion reaffirms the DOL’s position on this issue, and was based on the DOL’s review of job descriptions provided by the National Association of Mutual Insurance Companies. Note that despite the DOL’s position that adjusters qualify as exempt, a California appeals court ruled differently in a recent case involving Farmers Insurance Exchange. That lawsuit resulted in a $90 million verdict against Farmers for back overtime pay.