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 or 1-866-571-7808. Please visit the settlement website at 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:

Case Timeline

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.

AIL Allegedly Misclassified its Workers under California Labor Law

Under California employment law and the laws of many other states, all mandatory hours must be paid if the person should have been classified as an employee, but was misclassified as an independent contractor under California law.

Our California Employment Lawyers

Eric Gibbs

A founding partner at the firm, Eric has negotiated groundbreaking settlements that favorably shaped laws and resulted in business practice reforms.

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Steven Tindall

Steven specializes in employment litigation and has been lead or co-lead counsel on several cases that resulted in settlements of over $1 million.

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Amanda Karl

Amanda represents employees, consumers, and sexual assault survivors in complex class actions. She also leads the firm’s Voting Rights Task Force.

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Dylan Hughes

Dylan concentrates his practice on investigating and prosecuting fraud matters on behalf of whistleblowers, consumers, and employees.

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Linda Lam

Linda focuses her practice on representing consumers, small businesses, and employees in complex litigation.

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Aaron Blumenthal

Aaron represents consumers, employees, and whistleblowers in class actions and other complex litigation.

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Our California Employment Practice

Our California employment attorneys – with over 50 years of collective experience litigating under California employment law – know how to fight for employees’ rights and get them the money they deserve. We’ve recovered tens of millions of dollars for California employees and represent individuals as well as class actions in virtually every area of California employment and labor laws: California overtime law, off the clock violations in CA, breach of contract disputes, California independent contractor law, sexual harassment, employee misclassification, discrimination, as well as mass layoffs in violation of the California WARN Act. Our California employment lawyers are repeatedly recognized for their expertise litigating in California. Founding partner Eric Gibbs has been selected as one of the Top Plaintiff Lawyers in California. And seventeen of the firm’s attorneys were selected as Northern California Super Lawyers and Rising Stars, a distinction received by less than 5% of attorneys in Northern California.

About Us

Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
titan of plaintiffs bar award
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chambers USA leading firms award
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