An Illinois-based insurance and financial services company said it is certain one of its Madison County agents is an independent contractor, despite the agent’s recently filed putative class action that alleges otherwise.
“We are confident that Mr. Calloway was an independent contractor,” a State Farm spokeswoman stated in an email to the Record. “State Farm is aware of the class action filed Friday, Aug. 2, 2019. We are reviewing and evaluating it.”
Andrew Calloway, State Farm Insurance Agent and owner of Pin Oak Agency in Maryville, claims he and other agents are “misclassified as independent contractors,” according to his lawsuit filed in the Madison County Circuit Court.
Calloway is suing State Farm under its various names, including State Farm Mutual Automobile Insurance Company and its life insurance and fire and casualty divisions, claiming the company’s “misclassification” violates the Illinois Wage Payment and Collection Act (IWPCA). Calloway alleges, on behalf of himself and others similarly situated, that State Farm fails to reimburse expenses and underpays their wages “through improper deductions.”
The 31-page lawsuit bases much of its case on changes to the IWPCA earlier this year. The act was amended to cover reimbursement requirements for employees who incur expenditures or losses while doing their jobs. With the amendment, Illinois became the nation’s ninth state to legally impose expense and loss reimbursement requirements upon employers in the state.