Defining The Scope Of The Administrative Exemption

Law360, New York (January 27, 2012, 1:24 PM EST) -- On Dec. 29, 2011, the California Supreme Court, in a unanimous decision, reversed the California Court of Appeal’s decision that held that insurance adjusters are not exempt employees as a matter of law.

In a highly technical decision involving the interplay of provisions of the Labor Code, the wage orders and the incorporated federal regulations, the Supreme Court found that the Court of Appeal had misapplied the substantive law concerning the administrative exemption.

The court focused its inquiry on one aspect of the administrative exemption: “whether...
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