Jottings By An Employer's Lawyer

Saturday, February 28, 2004

Who Needs The New White Collar Regs? Allstate Establishes Administrative Exemption

In a huge opt-in class action involving 2,300 Neighborhood Office Agents, the district court ordered 6 plaintiffs to be test case. After discovery, the company established the administrative exemption on summary judgment. The district court granted summary judgment not only to the test 6, but on the rest of the class as well. On appeal, the court upheld the summary judgment on the basic issue of the administrative exemption. Hogan v. Allstate Insurance Company (11th Cir. 2/27/04) [pdf]. In what should be a mostly temporary setback, the Court found that the application of the summary judgment to the remainder of the class was not appropriate since they had not received notice under Rule 56(c). Although you don't have to go back any further than a certain foul ball in the Cubs v. Marlins national league championship game to know the danger of giving anyone a second chance, still Allstate has to feel it is in pretty good hands at this point.

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