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Robinson-Smith v. Government Employees Insurance Co.

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Argued October 15, 2009

Before: GINSBURG and HENDERSON, Circuit Judges, and WILLIAMS, Senior Circuit Judge.

Government Employees Insurance Corporation, better known as GEICO, underwrites, sells and services insurance policies covering automobiles and other property. Jerome Robinson-Smith, Christine Lindsay and Robert McGruder, the named plaintiffs in the two consolidated cases on appeal, worked for GEICO as “auto damage adjusters.”*fn1 They sued GEICO for overtime benefits they claim they are owed under the Fair Labor Standards Act of 1938 (FLSA), 29 U.S.C. §§ 201 et seq.,which ordinarily requires employers to pay employees time-and-one-half for hours worked beyond forty per week unless the employees are exempt. GEICO considers auto damage adjusters exempt “administrative” employees. On cross motions for summary judgment, the district court, applying the so-called “short test” used by the United States Department of Labor (Labor or DOL) to describe administrative employees, held that GEICO’s auto damage adjusters do not exercise “sufficient” discretion and independent judgment to qualify for the exemption and granted the plaintiffs summary judgment.*fn2 GEICO appeals the judgment, arguing that the undisputed fact that the adjusters exercise “some discretion” means that they are exempt from overtime pay as administrative employees under the FLSA. For the following reasons, we agree with GEICO and reverse.

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