The Institutes

California ruling could narrow administrative exemption for adjusters

 Thursday, October 11, 2012

 Business & Legal Resources

Last December, the California Supreme Court reversed a state Court of Appeals ruling that had dramatically narrowed the scope of the administrative exemption. Although the high court declined to definitively answer whether the insurance claims adjusters in the case were exempt, it rejected the appellate court’s analysis of the issue and returned the case to the lower court to reconsider. The Court of Appeals did just that and has released a new opinion—one that essentially reinstates its original position and seems to fly in the face of the Supreme Court’s position on how you determine whether the administrative exemption applies.
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