Class Certified in Independent Contractor Lawsuit Against Bankers Life
October 3, 2007
A class of current and former Bankers Life insurance agents who claimed that Bankers Life misclassified them as independent contractors rather than as employees. The class includes some 1900 agents, all working in California. The case was originally filed on September 18, 2006, in Los Angeles Superior Court, but was removed to federal court in California, and then transferred to Judge Conlon’s courtroom in Illinois due to a venue provision in the agents’ contract. Although the case rests in Illinois, California employment law applies.
"Bankers Life said their agents are independent contractors, but we believe they were actually employees under the law," said John N. Quisenberry of The Quisenberry Law Firm, which represents the class along with Illinois local counsel Douglas Werman. "Plaintiffs allege that Bankers Life classified them as independent contractors to obtain an unfair business advantage over its competitors who abide by California’s employment laws," stated Quisenberry attorney Robert J. Drexler, Jr. "The legal question is how much control Bankers Life exerted over the agents. In this case, Bankers Life imposed strict policies and procedures on their agents. We believe that under the law, this level of control dictates that the agents are employees," commented attorney John Quisenberry.
The approximately 1900 agents in the class seek to recover the benefits owed to them had they been properly classified as employees, such as unemployment and disability insurance withholdings, social security contributions, workers compensation premiums and necessary out-of-pocket expenses. "These agents worked hard to increase Bankers Life’s profits each year. But the company did not fairly compensate its agents for their work," said Quisenberry. If the court does determine that the agents are really employees, not independent contractors, they will be entitled to the benefits to which Bankers Life’s employees are entitled.
The next step in the proceedings will be to give notice to the class members of the lawsuit and their right to participate.
