Former Employee Sues 1st Quality Insurance Group Over Alleged Misclassification

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Three operating companies of 1^st Quality Insurance Group and one individual with control of the business are on the receiving end of a lawsuit filed by a former employee who claims they misclassified him as an independent contractor and denied him benefits he was entitled to under the Fair Labor Standards Act (FLSA). According to the suit, the plaintiff was employed by the defendants as an inside sales representative between May and September 2017 and worked more than 40 hours per week without receiving overtime wages. He was allegedly given a $600 draw – which was later reduced to $300 – per week against commissions, which amounted to less than the minimum wage for all hours worked when he was unable to earn enough commissions to cover the draw.

The plaintiff claims the defendants maintained control over all aspects of his job and therefore should have classified him as an employee instead of an independent contractor. Furthermore, the plaintiff says he did not hold an insurance license and should have been considered an hourly employee rather than an underwriter who was paid based on commissions. As a result of the alleged misclassification, the suit argues, the plaintiff was denied minimum and overtime wages, along with other employee benefits.