Two Adjusters Allege AIG Violated Federal Overtime Rule

September 19, 2007

Two insurance adjusters employed by giant insurer American International Group say they have filed a collective action under the Federal Fair Labor Standards Act asserting that AIG intentionally misclassified hundreds of clerical employees as exempt from federal overtime requirements.

The plaintiffs, residents of New Jersey, contend that they were not executive, administrative or professional employees as defined by the FLSA and, as a result, should have been paid at least one-and-one-half times their regular hourly rate for working more than 40 hours in a given work week.

The suit, filed Sept. 6, 2007 in the U.S. District Court for the District of New Jersey, seeks damages for all similarly-situated AIG employees including unpaid overtime since January 2001, liquidated damages, and interest, according to lawyers for the plaintiffs.

“AIG appears to have knowingly and willfully denied plaintiffs and their colleagues overtime pay for no other reason than to improve its bottom line,” said David J. Cohen, attorney for the plaintiffs who heads the class action group of the N.J. law firm of Saltz, Mongeluzzi, Barrett & Bendesky, P.C. “We intend to shed light on AIG’s illegal conduct and seek the maximum recovery for its hard working men and women.”

Sources:
SMBB
www.smbb.com

Sidney L. Gold & Associates, P.C.
www.discrimlaw.net

Topics Numbers AIG

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Latest Comments

  • September 24, 2007 at 10:46 am
    blondie says:
    Many a company, large and small, will attempt to muddy the waters when it comes to exempt and non-exempt and get out of paying OT. Salaries are a big portion of the pie and th... read more
  • September 22, 2007 at 3:57 am
    KOB says:
    Let us not lose the focus of the Pltf's suit. They simply indicate that they are adjusters, but do not meet the definition of a "professional" under FLSA. You may recallthat ... read more
  • September 20, 2007 at 3:06 am
    N. Judge says:
    1. You're right. If you're an adjuster, in most states (exc. CA) you're a professional and don't get paid overtime. 2. I loved litigating for AIG because they'd take it to y... read more

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