MacGregor v. Farmers Insurance Exchange
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In Brief
A federal judge denied defendants’ motion for summary judgment, permitting Mr. MacGregor and his colleagues to take claims arising under the FLSA to trial.
Summary of Filed Complaint
By refusing to approve overtime but demanding that work still be completed under threats of termination, Farmers required its employees to work “off the clock” without pay.
What Happened in Court
A federal judge refused to rule against a group of claims representatives who say they endured years of underpayment by Farmers Insurance Exchange, clearing the class-action case to proceed toward trial.
In an order issued on August 20, 2014, Judge David C. Norton rejected Farmers’ argument that its former employees were exempt from federal overtime rules: As he noted, the company itself had classified the workers as non-exempt — and now asserted the the opposite.
Judge Norton also said that the claims reps had provided enough evidence to show that they were routinely underpaid, and that Farmers may have permitted the practice. Under such circumstances, he said, Farmers could not cut the proceedings short.
