North Star Insurance Advisors Lawsuit: Unpaid Overtime?

Attorneys working with ClassAction.org want to hear from current and former insurance agents for North Star Insurance Advisors.

A lawsuit has been filed alleging that the insurance marketing firm violated federal and state labor laws by failing to pay its insurance agents for all hours worked, including overtime hours. According to the case, insurance agents were misclassified as independent contractors – i.e., people who are in business for themselves – when they should have been classified as bona fide employees who are entitled to certain protections like minimum and overtime wages.

Now, more people are needed to come forward to join the case. If you worked as an insurance agent for North Star Insurance Advisors within the past three years, fill out the form on this page to get in touch.

Employee vs. Independent Contractor: What’s the Difference?

Generally, independent contractors are workers who are in business for themselves and are considered “self-employed.” They usually have the freedom to decide how to run their business, including, for instance, the rates they set, the hours they work, which clients they work for and what equipment is used.

Employees, on the other hand, are subject to the control of their employers and generally have less independence when it comes to deciding how to perform their jobs. Thus, while there isn’t just one test to determine whether a worker is an independent contractor or employee, some of the factors that are typically considered include the level of control the company maintains over the worker’s job, whether the worker is performing services that are part of the company’s normal course of business and the individual’s opportunity for profit and loss.

Importantly, independent contractors are generally considered exempt from certain protections that are provided to employees under state and federal labor laws, including minimum wage for all hours worked and time-and-a-half overtime wages for all hours worked in excess of 40 each week.

However, just because a worker is classified as an independent contractor and receives a 1099 tax form from their employer doesn’t mean they have been correctly classified as exempt from these protections.

Why Might North Star Insurance Agents Be Owed Unpaid Wages?

North Star Insurance Advisors has been accused of intentionally misclassifying its insurance agents as independent contractors in order to avoid paying required wages and providing certain benefits that employees are entitled to under state and federal labor law.

According to the lawsuit against the company, North Star controls “every aspect of [insurance agents’] employment,” including their wages, hours and clients. Moreover, the company allegedly bars agents from working for anyone else while they’re performing services for North Star, and the services they perform are part of the firm’s normal course of business – namely, selling insurance policies.

As such, North Star insurance agents should have been classified as employees and paid for all hours worked, including time spent in training, completing paperwork, attending weekly meetings and working through breaks, according to the suit.

How Could a Lawsuit Help?

A successful lawsuit against North Star Insurance Advisors could help former and current insurance agents recover money for any unpaid wages and potentially force the company to change its pay practices.

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