Two New Jersey insurance adjusters employed by property and casualty insurer AIG, Inc., have recently filed a collective-action lawsuit under the Federal Fair Labor Standards Act. The FLSA is in place to provide protection for non-supervisors against wage-and-hour abuses.

The suit, brought by Saltz , Mongeluzzi , Barrett & Bendesky P.C. and Sidney Gold & Associates, P.C., contends that AIG intentionally misclassified clerical employees as exempt from federal overtime requirements. A release from the law firm stated that the action was filed in the U.S. District Court for the State of New Jersey and seeks to recover damages for all similarly-situated AIG employees, including unpaid overtime since January 2001, liquidated damages, and interest.

Allstate has dealt with a similar situation when some of its adjusters in California complained that they were denied overtime pay from Nov. 1996 to Dec. 2004. State Farm and Farmers Insurance also have had comparable lawsuits brought against them by adjusters in recent years.

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