Court Approves Farmers Insurance Overtime Pay Settlement

In recent news, the court approved Farmers Insurance investigators’ $5.5 million overtime settlement. While the settlement resolves the case, this is not the first time Farmers violated the FLSA and California labor law. 

The California Wage and Hour Lawsuit Alleged Overtime Violations: 

The California wage and hour lawsuit alleged Farmers failed to pay overtime, and provide meal breaks and rest periods. The approved settlement applies to Special Investigators who worked for a California Farmers location from 2013 to 2018. While this settlement brings the recent California overtime lawsuit to a close, it’s not the first time Farmers has faced overtime pay violations. And it’s not the first time they’ve settled an overtime claim either. 

Judge Approves Farmers Overtime Pay Lawsuit Settlement: 

California federal Judge Hixson approved the settlement in late August 2020. The judge stated that settling the case was the quicker and easier path to resolution in comparison to continued litigation (litigation already extended over 3 years). With the approved settlement, Farmers special investigators and former special investigators can see a guaranteed route to payment. Each of about 80 plaintiffs in the case will receive about $47,000, which the judge noted was a “sizable” recovery. 

Other Famers Overtime Lawsuits and Overtime Lawsuit Settlements: 

Farmers Call Center Employees in 2011: Farmers isn’t new to overtime pay violation allegations or overtime lawsuits or even overtime lawsuit settlements. In 2011, Farmers agreed to a $1.52 million overtime pay settlement for 3,459 call center employees (that worked from Jan. 1, 2009 through May 10, 2010 in Florida, Kansas, Michigan, Oklahoma, Oregon, and Texas) after investigations discovered “significant systemic violations” of the FLSA overtime and accurate record provision. The settlement terms required Farmers to maintain future FLSA compliance with proper records and accurate compensation for all hours Farmers employees work. 

Farmers Claims Adjusters in 2014: In 2014, a group of Farmers claims adjusters filed a California wage and hour lawsuit alleging failure to pay overtime, and failure to provide rest periods and meal breaks. Close to two years down the road, Farmers settled the lawsuit with a $4.9 million settlement to 2,114 plaintiffs (Farmers claims adjusters employed between September 2011 through August 2016). 

The Most Recent Farmers Overtime Pay Settlement: The recent overtime settlement stemmed from a wage and hour lawsuit filed in 2017 by Farmers Insurance special investigators (David Deluca et al. v. Farmers Insurance Exchange et al., case number 3:17-cv-00034). The lawsuit was filed in the U.S. District Court for the Northern District of California. 

If you have questions about how to identify California labor law violations or if you need to file an overtime lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.