GEICO Reaches $940,000 Settlement in Call-Center Worker Lawsuits, Attorneys Receive 50% Share

GEICO has reached a settlement exceeding $900,000 to resolve lawsuits filed by nearly 1,500 call-center employees. These workers alleged that the insurance giant failed to compensate them for overtime, particularly for time spent booting up computers and logging into the GEICO network.

Out of the total settlement, approximately $520,000 will be allocated to the plaintiffs’ attorneys based in Nashville, Atlanta, and Birmingham, Alabama. This leaves an average payout of about $240 for each plaintiff. However, four named plaintiffs will receive around $5,000 each, while two others will be awarded $20,000 each as part of retaliation settlement payments.

The judge overseeing the case noted that the fees and costs payable to the plaintiffs’ counsel were negotiated separately from the amounts designated for the plaintiffs themselves. This distinction was highlighted in the approval of the settlement.

GEICO, a subsidiary of Berkshire Hathaway, did not admit any wrongdoing in the settlement agreement, which was filed in the U.S. District Court for the Middle District of Georgia. The agreement explicitly states, “GEICO denies any liability or wrongdoing of any kind whatsoever associated with the claims alleged” by the plaintiffs. The insurer specifically refuted allegations that it maintained employment practices that violated the federal Fair Labor Standards Act.

According to GEICO attorneys, the decision to settle was made to avoid the costs and disruptions associated with ongoing litigation and to resolve any outstanding claims in the lawsuits.

In 2023, hundreds of employees from GEICO’s Macon, Georgia, call center joined two lawsuits claiming that the company routinely neglected to pay for downtime at the jobsite. They alleged that employees were required to work off-the-clock and during breaks to compensate for this downtime.

The plaintiffs’ amended complaint argued, “GEICO does not pay Plaintiffs and similarly situated employees for time spent on work activities performed when they are not logged into” the computer system and network.

Last summer, the judge in the case barred some workers from joining the lawsuit, stating that their arguments had changed and lacked supporting evidence. Expert testimony also indicated that some employees were, in fact, compensated for more time than they had actually spent logged in.

The settlement agreement, which can be viewed here, received approval from Judge Marc Treadwell on January 23.

Related: Judge Mutes GEICO Call Center Workers’ Class-Action Demands Over Unpaid Time

Topics
Lawsuits

GEICO has reached a settlement exceeding $900,000 to resolve lawsuits filed by nearly 1,500 call-center employees. These workers alleged that the insurance giant failed to compensate them for overtime, particularly for time spent booting up computers and logging into the GEICO network.

Out of the total settlement, approximately $520,000 will be allocated to the plaintiffs’ attorneys based in Nashville, Atlanta, and Birmingham, Alabama. This leaves an average payout of about $240 for each plaintiff. However, four named plaintiffs will receive around $5,000 each, while two others will be awarded $20,000 each as part of retaliation settlement payments.

The judge overseeing the case noted that the fees and costs payable to the plaintiffs’ counsel were negotiated separately from the amounts designated for the plaintiffs themselves. This distinction was highlighted in the approval of the settlement.

GEICO, a subsidiary of Berkshire Hathaway, did not admit any wrongdoing in the settlement agreement, which was filed in the U.S. District Court for the Middle District of Georgia. The agreement explicitly states, “GEICO denies any liability or wrongdoing of any kind whatsoever associated with the claims alleged” by the plaintiffs. The insurer specifically refuted allegations that it maintained employment practices that violated the federal Fair Labor Standards Act.

According to GEICO attorneys, the decision to settle was made to avoid the costs and disruptions associated with ongoing litigation and to resolve any outstanding claims in the lawsuits.

In 2023, hundreds of employees from GEICO’s Macon, Georgia, call center joined two lawsuits claiming that the company routinely neglected to pay for downtime at the jobsite. They alleged that employees were required to work off-the-clock and during breaks to compensate for this downtime.

The plaintiffs’ amended complaint argued, “GEICO does not pay Plaintiffs and similarly situated employees for time spent on work activities performed when they are not logged into” the computer system and network.

Last summer, the judge in the case barred some workers from joining the lawsuit, stating that their arguments had changed and lacked supporting evidence. Expert testimony also indicated that some employees were, in fact, compensated for more time than they had actually spent logged in.

The settlement agreement, which can be viewed here, received approval from Judge Marc Treadwell on January 23.

Related: Judge Mutes GEICO Call Center Workers’ Class-Action Demands Over Unpaid Time

Topics
Lawsuits