Overtime Law for Insurance Underwriters

Employment Lawyer New YorkA New York City Employment Lawyer Assisting Insurance Underwriters With Obtaining Overtime Compensation

If you believe that you are eligible to recover overtime compensation for your work as an 

insurance underwriter, or that you were denied your overtime pay, seek legal help as soon as possible. Braverman Law PC can review your employment circumstances and may help you recover the compensation you deserve.

According to statistics provided by the U.S. Department of Labor, more insurance underwriters work in New York then any other state in the country.

Insurance underwriters review people’s applications for insurance policies. They also make determinations about whether to accept or deny an insurance application, usually based on the degree of risk posed by a particular applicant.

According to the U.S. Bureau of Labor Statistics (BLS), annual salaries for insurance underwriters can range from $40,000 to $122,000. The average salary for an insurance underwriter is somewhere in the neighborhood of $67,000 per year.

Generally speaking, pursuant to the federal Fair Labor Standards Act (FLSA), insurance underwriters qualify for compensation at a rate of time-and-a-half of their normal pay for working overtime. Overtime typically refers to work that goes beyond the traditional 40-hour work week. Whether the law entitles a particular employee to overtime compensation usually depends on the employee’s pay rate, job description, duties, and hours worked.

Taking Legal Action

An employer that failed to pay overtime compensation for hours worked in excess of 40 in any given week may have violated the FLSA.

Taking legal action against your employer to recover unpaid overtime may involve filing a lawsuit. In the lawsuit, your attorney will request damages to compensate you for all of the back overtime pay your employer owes you.

Lawsuits involving unpaid overtime compensation often involve overlapping questions of federal law and state law. Braverman Law can review your case and make sure that any overtime lawsuit is prosecuted to take advantage of all legal remedies in order to maximize your compensation.

Legal Test for Overtime Eligibility

In determining whether an insurance underwriter is exempt from overtime pay, federal courts apply what is known as the administrative exemption test. Under this test, assuming that the employee meets the applicable salary basis test (which most insurance underwriters will), the court examines two main questions:

  • Whether the employee has any decision-making power or authority, or whether that employee simply applies criteria that the company establishes
  • Whether the employee’s work directly relates to management or general business operations

The courts then apply this test to an employee’s particular circumstances. If the court determines that the employee performs administrative functions, the administrative exemption may apply, and the employee may not qualify for overtime pay. However, if the court determines that the employee does not exercise discretion and independent decision-making powers or perform managerial tasks, the administrative exemption may not apply—and the law may entitle the employee to receive overtime compensation.

The State of the Law in New York State (and New York City)

The U.S. Judicial Circuits have split decisions regarding overtime for insurance underwriters. New York State—and New York City—fall under the jurisdiction of the Second Judicial Circuit Court of Appeals.

According to the Second Circuit, the process of underwriting an insurance policy or loan constitutes “production work.” The Second Circuit has reasoned that the underwriters “produce” the loan or insurance policy, which in turn, is the product of the company. For this reason, underwriters’ duties do not constitute administrative functions, and the law entitles them to overtime benefits.

If you are an insurance underwriter in New York City and believe that your employer illegally denied you overtime benefits, Braverman Law PC can discuss your employment circumstances with you and review all of your legal options.

Call a New York City Employment Attorney Today to Discuss Your Case

Overtime laws are complex and difficult to understand. State and federal overtime laws can overlap or conflict, and you may need an experienced lawyer to determine which laws control your unique employment situation.

Attorney Adam Braverman understands state and federal overtime laws. He can discuss the circumstances of your employment with you and may help you obtain the overtime compensation you deserve—and to which the law may entitle you. Don’t wait to contact him, because you may have a limited amount of time in which to take legal action.

To schedule a free consultation and case evaluation with a New York City employment lawyer, please call today at (212) 206-8166, or contact Braverman Law PC online.