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Class Certified in Overtime Action Against GEICO on Behalf of Telephone-Dedicated Workers

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Case ID: 2638 | Employment | 08/19/2003

The class has been certified in a class action filed against Government Employees Insurance Company, commonly known as GEICO, on behalf of all current and former hourly paid, telephone-dedicated employees who worked in GEICO's call centers between March 25, 2000, and the present. The action alleges that the company fails to pay its workers overtime as required by the federal Fair Labor Standards Act. To participate in the action, class members must opt in no later than August 21, 2003.

The class is specifically made up of all current and former hourly paid, telephone-dedicated employees who worked in GEICO's call centers as Sales Associates, Customer Service Representatives, Direct Handlers, Billing Associates, or PBX employees during the stated period. This includes all hourly paid, telephone-dedicated employees in the sales, customer service, claims, billing, or PBX departments, regardless of precise job title. The action seeks compensatory damages in an amount equal to the amount of workers' unpaid overtime, plus an equal amount in liquidated damages as allowed by the Fair Labor Standards Act.

The action alleges that telephone-dedicated workers don't get paid for 30-40 minutes of overtime each day--time that allegedly adds up to as much as $465,000 per week. Those minutes are allegedly lost because employees at the GEICO call centers are paid according to their shift times or phone log times as opposed to when they actually get to work and start doing work tasks. The potential class has approximately 21,000 members, and covers all employees at GEICO's 10 calling centers, among others.

In addition to the federal case, a class action has been filed against GEICO in California. That action alleges that GEICO failed to pay wages in accordance with California law for GEICO employees who worked in California from May 5, 1999, to the present. The violations alleged in the California action are not limited to overtime claims because California law provides for more favorable remedies for California residents.

In an important development in the federal case, GEICO has agreed to not release the names of those who join the action to its regional office employees. This means that supervisors and other management will not be alerted when GEICO employees join the case. Additionally, GEICO has instructed its field office employees to refrain from discussing the case with class members.


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