Forum Selection Clause Invalid in Worker Misclassification Suit

California-based sales associates recruited by an alleged “pyramid scheme” will litigate their misclassification class claims in the Northern District of California, after the court said the forum-selection provision in their membership agreements isn’t enforceable under California state law.

Tricia Yeomans filed a putative class action in the U.S. District Court for the Northern District of California against World Financial Group Insurance Agency Inc. and World Financial Group Inc. The putative class would consist of individuals recruited by World Financial to work as “associates” selling financial and insurance products.

But the associates claim that World Financial operates as a “massive pyramid ...