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Allstate Insurance Unpaid Overtime Class Action Lawsuit Gets Greenlit

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Los Angeles, CA: unpaid overtime class action against Allstate Insurance Company, involving 800 Allstate employees in California who alleged that Allstate had a practice or unofficial policy of requiring its claim adjusters to work unpaid off the-the-clock overtime in violation of California labor law, will move forward.

The lawsuit was brought by casualty adjuster Jack Jimenez in 2010, on behalf of any claims adjuster working for the insurer in the state of California since September 29, 2006. The complaint alleges that Allstate's managers are required to stay within an annual budget that includes overtime compensation, and that the performance evaluations and bonuses paid to managers are dependent on how closely they conform to the budget. This would mean that a manager would have a disincentive to approve and report overtime, the class claims.

The class action alleges that Allstate sees repeated requests for overtime as a performance issue to be addressed with individual workers "including "suggestions"on how a claims adjuster can be better trained on efficiency and alternative methods of getting the work done that do not require overtime. Managers would often see workers performing off-the-clock work outside of their scheduled shifts but not inquire if overtime was requested, the workers say.

The plaintiffs contend Allstate's allegedly illegal conduct has been widespread and consistent. The class action suit alleges that Allstate had not paid overtime to current and former California-based claims adjusters in violation of California Labor Code and had not paid adjusters for missed meal breaks and that Allstate had not timely paid wages upon termination in violation of the California Labor Code. In addition, the lawsuit alleges that Allstate engaged in unfair competition in violation of California Business and Professions Code.

The case is: Jack Jimenez v. Allstate Insurance Company - CV 10-8486 AHM (FFMx). Plaintiffs are represented by Alexander R. Wheeler with the R. Rex Parris law firm.

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