Northwestern Mutual Faces OT Class Action By Sales Reps

By Juan Carlos Rodriguez (January 9, 2012, 6:58 PM EST) -- Northwestern Mutual Life Insurance Co. misclassifies its sales and financial agents as independent contractors in order to avoid paying minimum wages and overtime, according to a putative class action removed to California federal court on Thursday.

The insurer and its local office San Francisco Bay Area Group Inc. violated the California labor code and California unfair competition laws by classifying its representatives as independent contractors and denying them proper wages, former sales rep David Giannini said in the complaint.

Giannini and fellow former and current sales reps were treated as nonexempt employees, with the company exerting control over their work performance,...

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