Insurance Co. Sales Leaders Are Employees: 5th Circ.

Law360, New York (October 14, 2008, 12:00 AM EDT) -- Management-level sales leaders for a United Insurance Cos. Inc. division can qualify for “employee” status under the Fair Labor Standards Act, an appeals court has affirmed.

The U.S. Court of Appeals for the Fifth Circuit handed down the ruling on an interlocutory appeal on Monday, affirming a Texas district court's decision to grant summary judgment to the 14 plaintiffs, former sales leaders who sued UIC's Cornerstone America division to collect unpaid overtime wages.

The appeals court also vacated the district court's dismissal of one plaintiff's claims,...
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