Administrative Exemption

An important case was handed down by the California Court of Appeal on February 2, 2011, which holds that the plaintiff claims adjusters were exempt from overtime pay requirements under California’s “administrative exemption”. Hodge v. AON Insurance Services. In so holding, the court refused to apply the “administrative/production dichotomy” used by the earlier case of Bell v. Farmers Ins. Exchange, which found claims representatives to be non-exempt employees, not covered by the administrative exemption. The Hodge case makes clear that very little is clear in California wage and hour law, and that the classification of workers as exempt or non-exempt remains a very tricky business. —Adam K. Treiger

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