American Family Insurance has won the ultimate victory, and saved upwards of $1 billion in retirement benefits, in a legal case involving whether agents should be treated as employees, according to a report in the Wisconsin State Journal.
The U.S. Supreme Court has declined to hear an appeal by a group of former insurance agents who said they believe they are not independent contractors but instead employees with American Family, allowing a previous appeals court ruling to stand. In the suit, the agents argued that they were more than independent contractors and, as employees, they should receive retirement benefits.
In January, the U.S. Court of Appeals for the 6th Circuit had overturned a 2017 federal court ruling that stated the agents should be treated as employees. At that time, a judge said the agents should be treated as employees because of the tight reins the company places on them, but the appeals court noted the agents, at the time of their hire, signed contracts stating they are independent contractors.
Related story: Am Fam agents not employees, court rules
