Facts

Plaintiff class included 194 current and former employees of defendant State Farm in California. These class members consisted of service first representatives and/or senior service first representatives employed between Sept. 9, 1996 to July 2002; claim reinspectors employed from Sept. 8, 1996 to May 10, 2003; and CAT reinspectors/trainers and/or catastrophe trainers employed between Sept. 8, 1996 to May 10, 2003. State Farm classified these employees as exempt under the Labor Act.

PLAINTIFFS' CONTENTIONS:
The plaintiffs contended that State Farm misclassified them as exempt employees, which caused them to be unpaid for overtime work. Plaintiffs alleged that State Farm failed to pay for hours due; failed to provide meal and breaks; failed to pay all wages due upon termination; failed to pay the minimum wage; engaged in conversion and unfair business practices; and violated the Fair Labor Standards Act.

DEFENDANT'S CONTENTIONS:
State Farm countered that the employees were properly classified as exempt and were not entitled to overtime pay. As well, State Farm argued that they provided the correct compensation and meal and break periods.

Damages

The plaintiffs sought unpaid wages, overtime pay, compensation for meal and rest periods, restitution, pre-judgment interest, post-judgment interest, statutory penalties, attorney fees and costs.

Result

The plaintiffs agreed to a settlement of $14.6 million, which included the following: $2,346,224 for the service first representatives and/or senior service first representatives; $4,051,876 for the claim reinspectors; and $1,439,400 for CAT reinspectors/trainers and/or catastrophe trainers. State Farm also agreed to pay $20,000 for the settlement administrator's fee; $6,392,500 for the attorney fees; and $350,000 for the employer portion of tax due on the wage component of the settlement.

Other Information

MEDIATOR: Edward A. Panelli.