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The lawsuit was filed by two former Californias financial reps and one former Georgias financial representative inthe U.S. District Court for the Southerh District of California in San Diego and allegesthe Milwaukee-baseed life insurance company violated the federalk Fair Labor Standards Act and California’s overtime and minimumn wage laws. The court complaing states the plaintiffs and other financiapl representatives of the company were deniexd minimum pay andovertime pay.
the plaintiffs requested the recertification of hundredss of current and former Californiqa Northwestern Mutual reps from independent contractorsto full-time The plaintiffs are being represented in the court case by Davie Sanford, a partner at the Washington, firm of . Northwesternj Mutual spokeswoman Jean Towell said the companty denies the allegations and said thefirm "intendws to vigorously defend against this "The individuals who filed this suit are not, and have never been, employees of Northwestern Mutual," Towel l said.
The complaint alleges that NorthwesternMutual “intentionallgy and repeatedly” misclassified sales employeesd as independent contractors, who are exempt from federap and state wage and hour laws. Full-time employees are not NML was involved in a similar lawsuit in federal court over independent contractors in Pennsylvaniain 2008. NML won the lawsuit, allowinfg the company to retain financial representatives asindependenty contractors. In that case, the courts dismissed the plaintiff's "nearly identical because it was ruled that the independenty contractors are not employeeds and are not covered by the federap Fair LaborStandards Act, Towell said.
Northwestern Mutual currentlyh hasabout 7,000 financial representatives nationwide. The salesz reps actually work for independently owne d NorthwesternMutual agencies, but the parent companuy plays a strong role in the recruitint program and setting guidelines for hiring and training.
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