Revived lawsuit spotlights how misclassifying crisis workers could cost HR teams big
A federal appeals court warns employers: misclassifying workers during crisis response can lead to legal trouble, as shown in a revived insurance adjuster overtime lawsuit.
On October 16, 2025, the Eleventh Circuit Court of Appeals breathed new life into a lawsuit brought by three insurance adjusters who claimed they were denied overtime pay after working long hours on Hurricane Harvey claims. The case, which pits the adjusters against One Call Claims, LLC (OCC) and the Texas Windstorm Insurance Association (TWIA), is now headed back to the lower court, where a jury will decide if these workers should have been treated as employees, not independent contractors.
The facts are a wake-up call for HR leaders. In the aftermath of Hurricane Harvey, TWIA – a state-backed insurer – needed extra hands to process a flood of claims. OCC, a staffing firm, supplied licensed adjusters Joel Galarza, Vicki Wimberly, and Kathrine Carpenter to help TWIA manage the workload. The adjusters were required to have state licenses and prior experience, but TWIA also put them through additional training and certification to meet its own standards.
According to the adjusters, TWIA didn’t just set the rules – they set the schedules, too. Galarza reported working from 8 a.m. to 6 p.m. on weekdays and 8 a.m. to 5 p.m. on weekends, all under TWIA’s direction. The adjusters had to keep timesheets, get them approved, and...
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