Which exempt status of executive, professional, or administrative jobs is the case. Is the job exempt or non-exempt? Why or why not? Cheryl Wiley was promoted from auto damage appraiser to auto damage adjuster after being employed with Auto Insurance for three years. In her former position as auto damage appraiser, she worked at one of Auto Insurance’s drive-in locations inspecting damaged cars that remain in drivable condition. She performed this job under close supervision and all of her work had to be approved by the supervisor. The job was considered non-exempt and Wiley received overtime pay whenever she exceeded her required work hours. In her new position as auto damage adjuster, Wiley had responsibility for “assessing, negotiating, and settling automobile damage claims.” She spent a majority of her time appraising damaged vehicles and estimating repair costs, but also negotiating and settling claims with body shops over repair costs and with claimants over total loss vehicles. An auto damage adjuster had to determine how much Auto Insurance should pay to restore a vehicle to its pre-damage condition using the most economical parts available unless safety was a consideration. In assessing each vehicle, the adjuster used a software program to perform the analysis. While the software assisted with providing information on the cheapest parts and prices, the adjuster also had to make decisions not dictated by the software. For example, the adjuster had to figure out if there was pre-existing damage, interview claimants, negotiate with shops over repair times, and ensure claims were not fraudulent. All adjustors had set dollar limits on their negotiating authority. Wiley was a level 1 adjuster and had settlement authority up to $10,000. However, she could recommend settlements in excess of her authority, but they had to be approved by her supervisor. Auto damage adjusters report to supervisors who report to auto damage managers who in turn report to auto damage directors. In the case of total loss vehicles, Wiley had to decide whether it was economically feasible to repair a vehicle or to pay the owner its value. These decisions were more time consuming because they involved thousands of dollars in additional liability for Auto Insurance. However, Auto Insurance had set standards for determining when to declare a vehicle a total loss. In her job as auto damage adjuster, Wiley handled on average more than 1,000 claims per year, totaling $2.5 million. About 20 percent of the yearly claims involved total loss vehicles. Wiley also worked under some supervision in the field one or two days a week at one of the drive-in locations. Wiley earned $41,000 per year in her new position but regularly worked in excess of 40 hours per week. When she asked about being paid for overtime, she was told that unlike her prior job, the auto damage adjuster position was non-exempt. Wiley did not agree and filed a lawsuit against Auto Insurance alleging she is entitled to overtime pay because her job is primarily administrative, using well-defined guidelines and policies.
Which exempt status of executive, professional, or administrative jobs is the case.
Is the job exempt or non-exempt? Why or why not?
Cheryl Wiley was promoted from auto damage appraiser to auto damage adjuster after being employed
with Auto Insurance for three years. In her former position as auto damage appraiser, she worked at
one of Auto Insurance’s drive-in locations inspecting damaged cars that remain in drivable condition.
She performed this job under close supervision and all of her work had to be approved by the
supervisor. The job was considered non-exempt and Wiley received overtime pay whenever she
exceeded her required work hours.
In her new position as auto damage adjuster, Wiley had responsibility for “assessing, negotiating, and
settling automobile damage claims.” She spent a majority of her time appraising damaged vehicles and
estimating repair costs, but also negotiating and settling claims with body shops over repair costs and
with claimants over total loss vehicles. An auto damage adjuster had to determine how much Auto
Insurance should pay to restore a vehicle to its pre-damage condition using the most economical parts
available unless safety was a consideration. In assessing each vehicle, the adjuster used a software
program to perform the analysis. While the software assisted with providing information on the
cheapest parts and prices, the adjuster also had to make decisions not dictated by the software. For
example, the adjuster had to figure out if there was pre-existing damage, interview claimants, negotiate
with shops over repair times, and ensure claims were not fraudulent. All adjustors had set dollar limits
on their negotiating authority. Wiley was a level 1 adjuster and had settlement authority up to $10,000.
However, she could recommend settlements in excess of her authority, but they had to be approved by
her supervisor. Auto damage adjusters report to supervisors who report to auto damage managers who
in turn report to auto damage directors.
In the case of total loss vehicles, Wiley had to decide whether it was economically feasible to repair a
vehicle or to pay the owner its value. These decisions were more time consuming because they involved
thousands of dollars in additional liability for Auto Insurance. However, Auto Insurance had set
standards for determining when to declare a vehicle a total loss. In her job as auto damage adjuster,
Wiley handled on average more than 1,000 claims per year, totaling $2.5 million. About 20 percent of
the yearly claims involved total loss vehicles. Wiley also worked under some supervision in the field one
or two days a week at one of the drive-in locations. Wiley earned $41,000 per year in her new position
but regularly worked in excess of 40 hours per week. When she asked about being paid for overtime,
she was told that unlike her prior job, the auto damage adjuster position was non-exempt. Wiley did not
agree and filed a lawsuit against Auto Insurance alleging she is entitled to overtime pay because her job
is primarily administrative, using well-defined guidelines and policies.
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