Top Class Actions  |  September 28, 2020

Category: Closed Class Actions

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This settlement is closed!

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American Income Life Insurance has agreed to pay $5.75 million to resolve claims that it violated the rights of its sales agents under California labor law. Under the settlement, eligible employees will be able to recover compensation based on the number of weeks they worked or trained.

The settlement benefits individuals who trained or worked as a sales agent for American Income Life Insurance in California between Sept. 12, 2014 and Aug. 16, 2019.

Plaintiffs in the American Income Life Insurance class action lawsuit argued that the company failed to properly compensate workers for time spent training or working in sales agent positions.

Allegedly, the company failed to pay sufficient wages to trainees — actions that allegedly continued when trainees started to work within their positions. Sales agents were reportedly denied overtime wages, proper mail and rest breaks, accurate wage statements, reimbursement for work-related expenses and waiting time penalties.

Plaintiffs claim these actions violated several California wage laws.

American Income Life Insurance has not admitted any wrongdoing but has agreed to resolve the claims against it in a $5.75 million class action settlement deal. The settlement will provide cash payments to consumers, compensation for attorneys and plaintiffs, settlement costs and over $100,000 in penalties under California’s Private Attorneys General Act.

Under the terms of the American Income Life Insurance class action settlement, Class Members can recover cash payments from two settlement funds. Exact payments will depend on how many Class Members choose to participate in the settlement and their experiences.

An All Trainees and Agents Fund of more than $2.5 million will be used to compensate Class Members based on the number of workweeks spent working and/or training as a sales agent. Training weeks will be valued at 2x, while sales agent workweeks will be valued at 1x.

A Terminated Trainees and Agents Fund worth more than $1.6 million will be divided equally amongst Class Members whose affiliation with American Income Life Insurance was terminated between Sept. 12, 2015 and Aug. 16, 2019.

Class Members can benefit from both the All Trainees and Agents Fund and the Terminated Trainees and Agents fund, assuming they are eligible for both.

No claim form is required to benefit from the American Income Life Insurance settlement. Instead, Class Members will automatically receive their check unless they opt out of the settlement. The deadline for exclusion and objection is Nov. 3, 2020.

The final approval hearing for the American Income Life Insurance class action settlement is Jan. 7, 2021.

Who’s Eligible

Individuals who trained or worked as a sales agent for American Income Life Insurance in California between Sept. 12, 2014 and Aug. 16, 2019.

Potential Award

Cash payments from two settlement funds.

An All Trainees and Agents Fund of more than $2.5 million will be used to compensate Class Members based on the number of workweeks spent working and/or training as a sales agent. Training weeks will be valued at 2x, while sales agent workweeks will be valued at 1x.

A Terminated Trainees and Agents Fund worth more than $1.6 million will be divided equally amongst Class Members whose affiliation with American Income Life Insurance was terminated between Sept. 12, 2015 and Aug. 16, 2019.

Class Members can benefit from both the All Trainees and Agents Fund and the Terminated Trainees and Agents fund.

Proof of Purchase

No proof of purchase is required.

Claim Form

There is no claim form for this settlement. Class Members with further questions can click here for more information.

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion Deadline

11/03/2020

Case Name

Joh, et al. v. American Income Life Insurance Company, Case No. 3:18-CV-06364-TSH, in the U.S. District Court for the Northern District of California

Final Hearing

01/07/2021

Settlement Website
Claims Administrator

AIL Settlement Administrator
c/o KCC Class Action Services LLC
P.O. Box 43208
Providence, RI 02940-3208
info@AILClassAction.com
1-866-571-7808

Class Counsel

Michael A. Gould
Aarin A. Zeif
GOULD & ASSOCIATES

Steven M. Tindall
Amanda M. Karl
GIBBS LAW GROUP LLP

Defense Counsel

Arwen Rainbird Johnson
Albert Quoc Giang
KING & SPALDING LLP

John Walker,
SACRO & WALKER LLP

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3 thoughts onCalifornia American Income Life Insurance Sales Agent Class Action Settlement

  1. Mari Sierra says:

    Pls add

  2. Lisa Douglas says:

    Does this have any ramifications for trainees and agents in other states that experienced similar situations?

  3. Charity Shope says:

    Do you happen to know how this could effect American income life trainees in west virginia? I had worked for this company from may-september. Have experienced the same situation. Just didn’t know I could do anything about it.

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.