GEICO Agent Stumbles in Worker Misclassification, Benefits Suit

GEICO Corp. defeated a lawsuit by certain insurance agents who say they were wrongly classified as independent contractors and blocked from receiving full retirement, health, and life insurance benefits.

The agents provided services to GEICO under contracts expressly indicating that they’re not eligible to participate in certain employee benefit plans, Judge Michael H. Watson said. This means they don’t qualify as plan participants and thus lack statutory standing to sue for these benefits under the Employee Retirement Income Security Act, Watson said.

The proposed class action says the insurer misclassifies hundreds of its “captive” insurance agents—those who agree to sell ...