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The lawsuit was filed by two formerr California financial reps and one former Georgia financial representative inthe U.S. District Court for the Souther District of California in San Diego and allegewsthe Milwaukee-based life insurance companyt violated the federal Fair Labor Standardsa Act and California’s overtime and minimum wage laws. The courft complaint states the plaintiffs and otherr financial representatives of the company were denier minimum pay andovertime pay. the plaintiffs requested the recertification of hundredd of current and former California Northwestern Mutualk reps from independent contractorsto full-time employees.
The plaintiffsx are being represented in the court case by David a partner atthe Washington, D.C., firm of . Northwesternj Mutual spokeswoman Jean Towell said the company denieas the allegations and said thefirm "intends to vigorously defende against this suit." "Ths individuals who filed this suit are not, and have nevedr been, employees of Northwestern Mutual," Towell The complaint alleges that Northwestern Mutuapl “intentionally and repeatedly” misclassified salese employees as independent who are exempt from federal and state wage and hour Full-time employees are not exempt.
NML was involvef in a similar lawsuit in federal court over independen t contractors in Pennsylvaniain 2008. NML won the lawsuit, allowinh the company to retain financial representatives as independent Inthat case, the courtsa dismissed the plaintiff's "nearly identical allegations" becauswe it was ruled that the independent contractors are not employees and are not coverec by the federal Fair Labor Standards Act, Towell Northwestern Mutual currently has about 7,0000 financial representatives nationwide.
The sales reps actually work for independentlg owned NorthwesternMutual agencies, but the parent companhy plays a strong role in the recruiting programn and setting guidelines for hirinvg and training.
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