Federal judge gives preliminary approval of Erie Indemnity suit

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A U.S. District Court judge has given his preliminary approval of a class action suit against Erie Indemnity Co. alleging the company failed to pay overtime to claims adjusters.

scalesbalanceJohn Stanislaw, the lead plaintiff in the case, says since February 2006, claims adjusters in the Murrysville, Pa., office have been denied overtime pay because Erie Indemnity management altered pay records or knowingly failed to record of pay hours adjusters worked outside the office, according to the Erie Times News.

The case was originally filed in 2007, seeking the insurance company to pay overtime and interest, damages and penalties on wages to claims adjusters who were affected.

U.S. District Court Judge Sean J. McLaughlin ruled Sept. 17 that Stanislaw presented enough evidence to pursue his claim that other adjusters were treated similarly by the company, the management arm of Erie Insurance Group.

The ruling allows the parties to submit a proposed notice to be advertised and mailed to affected employees of the Murrysville office, the report said, who may join the suit and share in any proceeds.

McLaughlin’s ruling does not guarantee that the case will remain a class action suit.

Erie Indemnity, which has denied the claims, will have a chance to challenge the class action status of the case once a discovery period of evidence gathering is complete, the judge said in his ruling.

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