GEICO, a major U.S. auto insurer, agreed to pay more than $900,000 plus administrative costs to settle lawsuits filed by almost 1,500 call-center employees.
The workers alleged the insurer failed to pay overtime for tasks such as starting computers and logging into internal systems before shifts.
Roughly $520,000 of the settlement flows to plaintiffs’ attorneys based in Nashville, Atlanta, and Birmingham, Alabama, according to court filings and Insurance Journal.
After legal fees, the remaining funds translate to an average payout of about $240 per worker. Four named plaintiffs receive close to $5,000 each, while two others collect $20,000 apiece tied to retaliation claims.
The presiding judge approved the agreement and noted that attorney fees and costs were negotiated separately from payments made to plaintiffs.
The structure avoided reducing individual awards through post-settlement disputes over legal expenses.
GEICO, which operates as a subsidiary of Berkshire Hathaway, denied wrongdoing as part of the settlement. The insurer stated it did not violate wage and hour laws and rejected claims that its employment practices failed to meet federal overtime standards.
Company lawyers said GEICO entered the agreement to avoid continued litigation costs and workplace disruption. The filing stressed that the settlement resolves all remaining claims without admitting liability.
The lawsuits originated in 2023, when hundreds of employees at GEICO’s Macon, Georgia call center joined two actions alleging unpaid downtime and off-the-clock work.
Plaintiffs argued they were required to work during breaks or outside logged-in hours to offset system delays.
Court records show the judge later limited participation by some workers, citing shifting arguments and insufficient evidence.
Expert testimony also indicated certain employees received pay exceeding their logged-in time, weakening parts of the claims before the case reached resolution.
