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Preliminary 135 Million Dollar Settlement Approved in Overtime Case

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Case ID: 4181 | Employment | 01/17/2005

State Farm Insurance Company claims adjusters stand to gain about $135 million under a class action settlement approved January 17, 2005 by Los Angeles Superior Court Judge Anthony Mohr, an attorney for the plaintiffs said. The statewide class of adjusters sued for unpaid overtime. Plaintiffs attorneys said many adjusters will be receiving back payments in excess of $50,000.

The plaintiffs, including class representatives Tom Phillips, Lydia Jowyk, and John Guttierez, all of Lancaster, CA, contended that State Farm violated California wage and hour laws by requiring claims adjusters to work overtime without compensation. Phillips said he routinely worked 10 to 12 hours a day and that adjusters often worked 15 hours a day for weeks at a time when major disasters such as earthquakes or wild fires occurred. "You did whatever it took to get the work done," Phillips said, claiming a corporate attitude that employees were disloyal if they did not complete all the work before going home each day.

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