Sedgwick Sued for Unpaid Overtime
Sedgwick Claims Management Services, Inc., a third-party administrator of insurance claims, is facing a class action lawsuit from former and current employees who allege that they were not paid overtime wages in violation of the Fair Labor Standards Act (FLSA).
The lawsuit was filed in the United States District Court for the Middle District of Florida in 2021. The plaintiffs allege that Sedgwick required them to work long hours of overtime, but did not pay them for all of their overtime hours. The plaintiffs also allege that Sedgwick denied them meal and rest breaks, in violation of the FLSA.
Sedgwick has denied the allegations and has said that it will fight the lawsuit. The case is still pending in court.
The Sedgwick lawsuit is one of several lawsuits that have been filed in recent years against third-party administrators of insurance claims. These lawsuits allege that these companies routinely violate the FLSA by failing to pay overtime wages and denying meal and rest breaks to their employees.
The outcome of the Sedgwick lawsuit could have a significant impact on the third-party administrator industry. If the plaintiffs are successful, it could lead to millions of dollars in damages being awarded to the plaintiffs and could force these companies to change their practices.
Update: In 2023, Sedgwick settled the lawsuit for $5.6 million. The settlement was reached after mediation between the parties.
The settlement is a major victory for the plaintiffs. It allows them to receive compensation for the overtime wages they were not paid. It also sends a message to other third-party administrators that they need to comply with the FLSA.
The settlement is a reminder that employees have rights under the FLSA. If they are not paid overtime wages or are denied meal and rest breaks, they should speak to an attorney about their legal options.
In addition to the unpaid overtime lawsuit, Sedgwick is also facing several other lawsuits, including a class action lawsuit alleging that the company discriminated against its employees on the basis of race and gender. The outcome of these lawsuits is still pending.
