A California jury sided with Farmers Group stating that California employment laws do not apply because the insurance agents filing discrimination claims are independent contractors.

The Case: James Melin et al. v. Farmers Group Inc. et al.

The Court: Alameda County Superior Court, California

The Case No.: RG19001677

The Plaintiff: James Melin et al. v. Farmers Group Inc. et al.

The plaintiffs in the case are former California-based insurance agents claiming that they were discriminated against for their age. The plaintiffs allege that Farmers Group fired them based on their age so they could replace them with younger, “more productive” workers. The plaintiffs’ attorneys presented evidence showing Farmers Group saved 440% on commissions by replacing established agents.

The Defendant: James Melin et al. v. Farmers Group Inc. et al.

The defendant in the case, Farmers Group Inc., argued that the insurance agents were independent contractors, not employees and that labor law did not apply to independent contractors. While the plaintiffs attempted to argue that Farmers Group imposed performance standards, office requirements, etc., that effectively “controlled” as they would an employee, the defendant argued that the evidence showed they were independent contractors:

Farmers Group argued that the agents could not state what Farmers Group does
I couldn’t identify their “sales managers.”
Filed their own taxes
Declared themselves sole proprietors or independent contractors to the IRS
And dedicated their office equipment, supplies, etc., on their taxes as a sole proprietor/independent contractor would

The Case: James Melin et al. v. Farmers Group Inc. et al.

In the case, James Melin et al. v. Farmers Group Inc. et al., Farmers Group Inc. was cleared of discrimination and wrongful termination allegations. The eight-week trial was followed by two days of deliberations. Still, the former California-based insurance agents claiming the company discriminated against them for their age so they could replace them with younger workers had their claims dismissed when jurors determined the four plaintiffs were, in fact, independent contractors, so Farmers did not violate California labor law.

If you have questions about how to file a California wrongful termination or age discrimination lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.