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Paul Hastings Defeats Misclassification and PAGA Claims Regarding AIG Workers Compensation Hearing Representatives

August 06, 2013

Los Angeles, CA - Paul Hastings LLP, a leading global law firm, announced today that the firm successfully represented AIG, a leading global insurance and financial services company, in a putative class action alleging misclassification and a claim for civil penalties under California’s Private Attorneys General Act (“PAGA”) relating to Workers’ Compensation Hearing Representatives across California. 

The case, Gallardo v. AIG Domestic Claims Inc., Chartis Claims Inc., et al., began as a putative class action with seven-figures ostensibly at issue.  In October 2012, Paul Hastings’ team was successful on its motion to deny class certification, affirmatively foreclosing the Plaintiff from pursuing his putative class claims.  The Plaintiff continued to pursue claims for individual damages and penalties arising from his alleged misclassification and a claim for PAGA civil penalties on behalf of other employees within California.  On July 25, 2013, the Court granted the Defendant’s Motion for Summary Judgment, holding that the remaining single plaintiff was properly classified as an exempt employee in his Hearing Representative position under the California Administrative Exemption due to the nature of his work, as a matter of law.  The Plaintiff’s PAGA claim, premised on his ability to prove his own misclassification, was also dismissed. 

The case was filed in the United States District Court, Central District of California.

Employment partner Elena Baca and associate Ryan Derry led the Paul Hastings Team. Partner Ray Bertrand also assisted in the matter.

Paul Hastings LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.