5th Circ. Backs FLSA Exemption For Claims Adjusters

Law360, New York (December 22, 2010, 3:06 PM EST) -- A federal appeals court has ruled that insurance claims adjusters are administratively exempt from the Fair Labor Standards Act, cutting down a putative class action by former American Risk Insurance Co. Inc. employees seeking to obtain overtime compensation.

In an unpublished opinion Monday, the U.S. Court of Appeals for the Fifth Circuit determined that ARI claims adjusters' tasks require discretion and independent judgment, and that the district court therefore correctly awarded summary judgment to the employer in the putative class action.

Plaintiff Sylvester Talbert contended that...
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