Geico class action claims insurer misclassifies agents as independent contractors

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Geico class action lawsuit overview:

• Who: Plaintiff James Moyer has filed a class action lawsuit against Geico.
• Why: Geico allegedly misclassifies captive insurance agents as independent contractors.
• Where: The Geico class action lawsuit was filed in Ohio federal court.

Geico agents are misclassified as independent contractors and are wrongfully denied employee benefits, according to a class action lawsuit filed Feb. 9 in Ohio federal court.

Plaintiff James Moyer says he was hired as a Geico insurance agent in 2007 but is classified as an independent contractor who is not entitled to benefits provided to other Geico employees.

Geico hired Moyer as an independent contractor along with “hundreds of captive insurance agents” to sell insurance products, Moyer alleges.

The Geico class action lawsuit defines captive insurance agents as agents who agree to sell insurance products on behalf of one insurance company, which contrasts with independent insurance agents who are authorized to sell on behalf of multiple insurance companies.

Geico class action says captive insurance agents should be entitled to employment benefits

Moyer says that, despite the independent contractor classification, Geico agents should be classified as employees. He notes that the insurance company exercises significant control over the roles and duties they perform.

For example, Geico allegedly controls the list of potential customers, sets performance goals, and can impose disciplinary measures on Geico agents who are classified as independent contractors.

Further, the Geico class action says captive insurance agents are offered the opportunity to opt in to Geico’s employee health and life insurance benefits.

“Together, these factors and others support the conclusion that Defendants’ insurance agents are employees,” the Geico class action lawsuit asserts.

The fact that Geico allows its agents to opt into the health and life insurance benefits qualifies Geico agents as “participants” under the Employee Retirement Income Security Act (ERISA), which was enacted by congress to provide protections for employees regarding benefit plans offered by their employers, Moyer explains.

Moyer claims that he and other putative class members are entitled to reimbursement for employment benefits that Geico allegedly unlawfully withheld from them. He also seeks an injunction to prohibit Geico from continuing to allegedly misclassify captive insurance agents as independent contractors.

An Illinois federal judge recently ruled that Geico cannot escape a class action lawsuit alleging it charged excessive premiums during the COVID-19 pandemic.

What do you think about the claim that Geico agents are misclassified as independent contractors? Let us know in the comments!

Moyer is represented by Damion M. Clifford of Arnold & Clifford LLP.

The Geico agents class action lawsuit is Moyer v. Government Employees Insurance Company, et al., Case No. 2:23-cv-00578, in the U.S. District Court for the Southern District of Ohio.

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