Northwestern Mutual Wins Court Battle Over Agent Classification
May 15, 2019 by Emily Zulz
A federal judge has dismissed a putative class action against Northwestern Mutual. The suit filed by a longtime insurance agent who claimed the company improperly classified him and his counterparts as independent contractors.
U.S. District Judge William J. Martini of the District of New Jersey granted Northwestern’s motion for summary judgment on plaintiff Fred Walfish’s claims that Northwestern Mutual had violated the New Jersey Wage Payment Law (NJWPL).
Walfish argued that, despite his classification as an independent contractor, Northwestern Mutual exerted a significant amount of control over the his day-to-day duties — including the deduction of expenses from agent commissions — meaning that he could be classified as an “employee” under the NJWPL, entitling him to the wage protections under that law.
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