American Family's 1099 Losing Battle and Industry Effect

Discussion in 'General Insurance Agent Discussions' started by AZDave, Aug 8, 2017.

  1. AZDave
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    AZDave Well-Known Member

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    I started a post on this in P&C, but this recent decision will certainly have an impact on all Captives.

    Hot off the press:

    Following a unanimous advisory jury verdict in April, U.S. District Court Judge Donald Nugent issued a decision last Tuesday, August 1st, stating that American Family Insurance had misclassified agents as independent contractors instead of employees. In addition, the Court denied American Family’s request that the class be decertified.

    Full press release can be found here:

    https://www.wexlerwallace.com/news-post/judge-rules-american-family-insurance-misclassified-agents/

    This will be a costly decision, and interesting to see the depth of payment.

    I'm expecting at least one year of free car washes. !

    Dave
     
  2. abkclauren
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    abkclauren Active Member

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    So glad the judge agreed but i thought this went straight to appeals? Progress nonetheless.
     
  3. AZDave
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    AZDave Well-Known Member

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    Yes, you are correct. Its off to the Sixth Circuit of Appeals with no deadline to accept of deny AMFAM's petitions. This will take some time...

    I understand all new agents are W2. Wonder if others will follow.

    Dave
     

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