Insurance claim adjusters still are exempt from federal overtime requirements, under the United States Department of Labor, Wage and Hour Division's final version of the controversial changes to the white-collar exemption regulations.
As requested by the American Association of Independent Claims Professionals (AAICP), an association of independent adjusting companies, the Labor Department specifically noted in the new regulations that claim adjusters generally are exempt from overtime pay requirements, regardless of what kind of company employs them, an insurance company or an independent. The new regulations also make some adjustments to exempt salary requirements that may affect claim adjusters, including raising the minimum exempt salary and creating a new pseudo-presumption of exempt status for higher wage-earners.
Since its inception, the federal Fair Labor Standards Act exempted most insurance claim adjusters from federal overtime pay requirements. Not only did the regulations implementing the FLSA specifically mention insurance claim adjusters, but the Wage and Hour Division issued opinion letters to independent adjusting companies confirming that traditional adjusting duties meet the requirements of the administrative exemption. Nonetheless, in recent years, insurance and independent adjusting companies have been plagued by expensive litigation challenging the exempt status of claim adjusters.
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