Employees of American Income Life Insurance filed a complaint that the company did not correctly compensate sales employees during and after their training period. American Income Life Insurance agreed to pay $5.75 million to settle the claim.
The plaintiffs accused the company of paying inadequate wages to sales agent trainees. They also argued that improper pay and work conditions continued once trainees began working in sales agent positions. Sales agents were routinely denied sufficient overtime pay and breaks, as well as accurate pay stubs, according to the complaint.
Although American Income Life Insurance has not admitted any wrongdoing in the case, the company agreed to allot money to two settlement funds.
The first, the All Trainees and Agents Fund, will provide cash payments to class members based on individual experiences. Class members will receive two times their owed compensation for the time they spent as a trainee and the exact amount owed for their time working as a sales agent at American Income Life Insurance. This fund will contain $2.5 million.
The second fund, the Terminated Trainees and Agents Fund, will hold more than $1.6 million. It is available to sales agents dismissed from the company between September 12, 2015, and August 16, 2019. Class members can receive payments from both funds.
Under California labor laws, the money will also cover compensation for the attorneys who worked on the case and settlement costs. American Income Life Insurance will also pay up to $100,000 in fines under California’s Private Attorney General’s Act. The final hearing in the case is scheduled for January 7, 2021.
Who Is a Member of the Class?
Any individual who trained or worked as a sales agent for American Income Life Insurance is an eligible member of the class. There is no claim form for this case, and all members of the class will receive a compensation check unless they opt out of the settlement.
The deadline to opt out is November 3, 2020. Class members will receive compensation based on the number of weeks they worked and trained in California. Eligible class members should visit the settlement website for more information.
Contact Our California Class Action Attorneys
A group of employees that shares a common complaint against their employer can file a class-action lawsuit in California. These lawsuits hold employers accountable for wrongful actions against their current and past workers and protect future employees from enduring the same misconduct.
At Workplace Rights Law Group, our California class action employment attorneys are passionate advocates for California workers. We have recovered millions of dollars in compensation for our clients, and we have the experience to take on companies like American Income Life Insurance.
Call our employment attorneys at (818) 844-5200 or send us an online message if you believe your rights have been violated. We are happy to review your case with you.