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Insurance industry wins temporary FLSA exemption for insurance adjusters in CRomnibus
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/ Categories: Insurers

Insurance industry wins temporary FLSA exemption for insurance adjusters in CRomnibus

Source: Lexology

Congress's omnibus spending bill effectively created a new exemption to the FLSA's overtime rules for insurance adjusters during the two-year period after a major disaster. Section 111 of the appropriations bill for the DOL directs the agency that the FLSA "shall be applied as if" there is an overtime exclusion for certain workers who are employed to adjust or evaluate claims resulting from or relating to a major disaster. The law defines a "major disaster" as "any disaster or catastrophe declared or designated by any State or Federal agency or department."

During that two-year period, the FLSA's overtime requirements would not apply to any person employed to adjust or evaluate claims if:

  • The employer is not an insurance company itself ("engaged, directly or through an affiliate, in underwriting, selling, or marketing property, casualty, or liability insurance policies or contracts");
  • The employer maintains all legally required workers' compensation coverage and withholds taxes from the employee's wages;
  • The employee receives average weekly compensation during the relevant period of at least $591.00 per week (or any higher amount established by the DOL, such as in the upcoming FLSA regulation rewrite we have covered recently);
  • The employee has all necessary licenses to perform the work; and
  • The employee's duties include "any" of a range of insurance adjusting activities outlined in Section 111, including interviewing parties, inspecting property, evaluating claims, negotiating settlements; or making litigation recommendations.

The above is from an article on Lexology click to read the article.

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