9th Circuit District Court Denies Overtime Pay by Finding Insurance Sales Agent is Independent Contractor – Los Angeles Wage & Hour Claims Attorneys Blumenthal, Nordrehaug & Bhowmik

by Norman B. Blumenthal on January 3, 2013

  When employers want to avoid paying workers overtime pay, they misclassify them as exempt administrative, professional, or executive personnel.  Or they claim the employee is actually an independent contractor.  Recently, a 9th Circuit District Court allowed a classification of independent contractor to stand.

In Daskam v. Allstate, an Allstate insurance sales agent sued claiming Allstate intentionally misclassified him as an independent contractor to avoid paying him overtime wage benefits.  The insurance agent argued he was actually an employee because:

  1. He had worked with Allstate for many years;
  2. Allstate controlled how he primarily performed his work, including setting his hours, establishing prices, choosing products to sell, and providing customer forms;
  3. His work was similar to work performed by Allstate employees; and
  4. His work was essential to Allstate’s business.

The district court found that while Allstate did exercise some control over how the insurance sales agent conducted his business, the amount of control exerted was not sufficient to make him an employee since the sales agent had the freedom to hire others to work for him and determined how much profit he would make.

If you are not being paid overtime and feel you have been misclassified as exempt from overtime pay, call an experienced Los Angeles labor attorney today at Blumenthal, Nordrehaug & Bhowmik at (310) 981-3918.  Blumenthal, Nordrehaug & Bhowmik is a California employment law firm with offices located in San Diego, San Francisco and Los Angeles. The firm dedicates its practice to contingency fee employment law work for issues involving misclassification as a salaried worker exempt from overtime, failure to pay vacation wages, misclassification as an independent contractor, off-the-clock work, wrongful termination, discrimination and other California labor laws.

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