Overtime Lawsuits in California

Abstract

Over the past several years, national companies with California employees have experienced a startling increase in unpaid overtime lawsuits. Settlement and judgment amounts have been in the tens of millions, and the $90 million jury verdict in Bell v. Farmers Insurance Exchange has prompted a wave of new lawsuits. Employers with employees in California need to know the requirements of the Fair Labor Standards Act (FLSA), the California Labor Code and accompanying wage orders issued by the California Industrial Wage Commission (IWC). California’s stricter requirements often catch out-of-state employers off guard. A common mistake made by many companies is ascribing titles such as “administrative claims representative,”“production manager” or “supervising engineer,” which suggest that an employee is exempt regardless of the actual duties performed by the employee. With a working knowledge of the FLSA, California Labor Code and IWC wage orders, an employer can avoid the costly mistakes of those companies surprised by California’s more protective standards.