State Farm Misclassifies Agents, Denies Benefits, Suit Says (1)

State Farm Mutual Automobile Insurance Co. is accused of denying retirement and health benefits to hundreds of insurance agents by wrongly treating them as independent contractors rather than employees.

The proposed class action was filed March 8 by two of State Farm’s “Term Independent Contractor Agents.” The agents, who say they were induced to invest tens of thousands of dollars to open State Farm-affiliated insurance agencies, accuse the company of controlling “every aspect” of their work while denying them access to the benefits extended to employees.

They also say State Farm “set them up for failure” by imposing unrealistic goals ...