American Income Life (AIL) Insurance Agent Employee Class Action Lawsuit
$5.75 million settlement approved in AIL class action lawsuit
On January 7, 2021, a California federal district court granted final approval to a $5.75 million dollar class action settlement on behalf of American Income Life (“AIL”) agents who were improperly compensated for the hours they worked and trained. You can read the final approval order here.
If you believe you are a class member, and you have not yet received your payment under the settlement, please contact the settlement administrator at info@AILClassAction.com or 1-866-571-7808. Please visit the settlement website at http://ailclassaction.com/ for the latest information on the settlement.
American Income Life Allegedly Failed to Properly Compensate Workers
Gibbs Law Group filed a class action lawsuit in the Northern District of California alleging that AIL violated certain provisions of the California Labor Code by failing to properly compensate its insurance agents for all hours spent working or in trainings, among other things. Our clients alleged that AIL required employees to attend mandatory meetings and trainings that lasted a week or more, without paying them commission or full wages. The lawsuit also alleged that American Income life failed to provide agents with full minimum wage, overtime pay, proper meal and rest breaks, and reimbursement for work-related expenses. In addition, AIL agents were allegedly subject to a practice called “chargebacks” which means that if an agent sold an insurance policy that was later canceled by a customer, AIL would illegally collect back the commissions and wages that those agents earned.
Who is Included in the AIL Class Action Settlement?
You are included in the settlement if you trained to become and/or worked as a sales agent in California for American Income Life Insurance Company (“AIL”) at any time between September 12, 2014 and August 16, 2019. For change of address forms and other information, please visit the settlement website: http://ailclassaction.com/.
On August 1, 2019, Plaintiffs submitted a proposed settlement for court approval. However, the court did not grant final approval of that settlement because penalties for certain claims are calculated on a per-person basis, and penalties for other claims are calculated on a per-workweek basis. In response, Gibbs Law Group renegotiated the settlement with AIL to account for the court’s concerns. The court was satisfied with the revised settlement, and on January 7, 2021, Magistrate Judge Thomas S. Hixson granted final approval to the settlement.
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