California Supreme Court Punts on Whether Claims Adjusters Might be Exempt

Sidestepping its first opportunity to address California’s overtime exemption for administrative employees, the state Supreme Court has ruled that although the court of appeal misapplied the “administrative/production worker dichotomy,” the case should be remanded for analysis under the applicable Industrial Welfare Commission wage order. In Harris v. Superior Court (Liberty Mutual), No. S156555 (Dec. 29, 2011), the unanimous Court reversed a determination that insurance adjusters were non-exempt production workers because “the Court of Appeal misapplied the substantive law.”