High Court To Review Administrative Exemption Case

In the October 2007 issue
of CWHA, we reported on a California
appeals court decision finding that claims adjusters for Liberty Mutual
Insurance Co. didn’t qualify for the administrative exemption from overtime
under California law.1 In particular, the court ruled, the adjusters duties mostly
consisted of “production” work, as opposed to work at the policy or operations
level, which is required for the exemption.

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Now, the California
Supreme Court has decided to review the case. The court will determine the
broad issue of whether claims adjusters employed by insurance companies fall
within the administrative overtime exemption. We’ll keep you posted.

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1 Harris v. Superior
Court (Liberty Mutual), Calif. Court of Appeals (Dist. 2)

B195121, 2007

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