Arthur J. Gallagher & Co. Settles Wage Class Suit for $8 Million

Insurance broker Arthur J. Gallagher & Co. will pay $8 million to end a wage and hour class action on behalf of some California employees, after a federal court approved the settlement.

Source: Bloomberg Law | Published on March 24, 2021

Nuclear verdicts continue

Pamela Rubin-Knudsen and Marnine Casillas alleged the company misclassified its client service managers as overtime exempt. Despite the managerial title, their work was mainly performing clerical tasks and facilitating the flow of information between Gallagher’s experts, clients, and insurers, the plaintiffs said. They also alleged the company failed to provide adequate meal breaks and wage statements.

But in November – two years after the lawsuit was first filed – the plaintiffs entered into a Stipulation of Class and Representative Action Settlement and Release, and sought to gain preliminary approval of the settlement agreement. In January, the plaintiffs filed a motion for Attorneys’ Fees, Costs and Incentive Awards, and in February they filed a motion for Final Approval of Class Action Settlement. Both were unopposed by Gallagher.

The US Central District Court of California had granted preliminary approval of the settlement agreement last year, and after a hearing on the final approval motion on March 15, the district court finally ordered on March 19 that all claims against Gallagher and its subsidiary, Arthur J. Gallagher Service Company, be “dismissed with prejudice,” court documents said.

Are you retail Agent Looking for a Quote?