Two Adjusters Allege AIG Violated Federal Overtime Rule

September 19, 2007

Two insurance adjusters employed by giant insurer American International Group say they have filed a collective action under the Federal Fair Labor Standards Act asserting that AIG intentionally misclassified hundreds of clerical employees as exempt from federal overtime requirements.

The plaintiffs, residents of New Jersey, contend that they were not executive, administrative or professional employees as defined by the FLSA and, as a result, should have been paid at least one-and-one-half times their regular hourly rate for working more than 40 hours in a given work week.

The suit, filed Sept. 6, 2007 in the U.S. District Court for the District of New Jersey, seeks damages for all similarly-situated AIG employees including unpaid overtime since January 2001, liquidated damages, and interest, according to lawyers for the plaintiffs.

“AIG appears to have knowingly and willfully denied plaintiffs and their colleagues overtime pay for no other reason than to improve its bottom line,” said David J. Cohen, attorney for the plaintiffs who heads the class action group of the N.J. law firm of Saltz, Mongeluzzi, Barrett & Bendesky, P.C. “We intend to shed light on AIG’s illegal conduct and seek the maximum recovery for its hard working men and women.”


Sidney L. Gold & Associates, P.C.

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