Northwestern Mutual Passes 'ABC Test,' Defeats Suit Claiming Agents Were Misclassified
U.S. District Judge William Martini was "unwilling to find that, by promulgating certain rules to ensure regulatory compliance, Northwestern exercised control and direction sufficient to fail" the test.
May 09, 2019 at 12:48 PM
3 minute read
A federal judge has dismissed a putative class action against Northwestern Mutual 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 violated the New Jersey Wage Payment Law.
Walfish had 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 he could be classified as an “employee” under the NJWPL, entitling him to the wage protections under that law.
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