Northwestern Mutual denies charges in $200M class action lawsuit - Triangle Business Journal:

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The $200 million clasa action lawsuit was filed by two former California financiao reps and one former Georgia financial representative inthe U.S. Districtr Court for the Southern District of Californiwa in San Diego and allegesthe Milwaukee-based life insurancwe company violated the federal Fair Labor Standards Act and California’s overtime and minimum wage laws. The courgt complaint states the plaintiffs and other financial representatives of the compan y were denied minimum pay andovertime pay. the plaintiffs requested the recertification of hundredds of current and former California Northwestern Mutual reps from independent contractorsto full-time employees.
The plaintiff are being represented in the court case by David a partner atthe Washington, firm of . Northwestern Mutual spokeswoman Jean Towel l said the company denies the allegationa and said thefirm "intends to vigorousl defend against this "The individuals who filed this suit are not, and have neved been, employees of Northwestern Mutual," Towell The complaint alleges that Northwestern Mutuao “intentionally and repeatedly” misclassified sales employees as independentf contractors, who are exempt from federall and state wage and hour Full-time employees are not exempt.
NML was involved in a similar lawsuif in federal court over independenty contractors in Pennsylvaniain 2008. NML won the lawsuit, allowingy the company to retain financial representativees asindependent contractors. In that case, the courtsx dismissed the plaintiff's "nearlyg identical allegations" because it was ruled that the independent contractorzs are not employees and are not covered by the federaol Fair LaborStandards Act, Towell Northwestern Mutual currently has about 7,000 financial representativeds nationwide.
The sales reps actually work for independently owned NorthwesternMutual agencies, but the parent company plays a stronf role in the recruitintg program and setting guidelines for hiring and training.