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$5.75 Million Settlement for California American Income Life Insurance Sales Agent Class Action

Join the California American Income Life Insurance Class Action Settlement

Recently, we’re bombarded with the news of American Income Life Insurance violating its sales agents under California labor law. After facing a lawsuit, the company has agreed to pay $5.75 million. In this settlement, eligible employees will receive compensation based on the number of weeks they worked or trained.

According to reports, the eligible class members for this settlement are the people who trained or worked as a sales agent for American Income Life Insurance in California between Sept. 12, 2014, and Aug. 16, 2019.

The plaintiffs of this class action lawsuit asserted that the company didn’t provide their workers with proper compensation, despite the time spent training or working in sales agent positions.

Moreover, the company neglected to pay adequate wages to trainees. These actions reportedly continued when trainees began working within their positions. Furthermore, sales agents didn’t receive overtime wages, proper meal and rest breaks, accurate wage statements, reimbursement for work-related expenses, and waiting time penalties.

Thus, the plaintiffs argued that these actions broke several California wage laws.

Are you one of the individuals who suffered from these unfair treatments from California American Income Life Insurance? It is possible that you or somebody you know maybe an eligible class member for this lawsuit. Feel free to contact us today.

Who’s Eligible?

Despite the allegations, American Income Life Insurance refused to admit to any wrongdoing. However, they agreed to settle the claims by paying  $5.75 million.

In this deal, the eligible class members will receive cash payments. Moreover, under California’s Private Attorneys General Act, the class action will also pay the attorneys, plaintiffs, settlement costs, and over $100,000 in penalties.

Reports revealed that eligible class members can receive cash payments from two settlement funds. Moreover, payments will be based on the number of Class Members who participated in the settlement, as well as their experiences.

Furthermore, an All Trainees and Agents Fund of more than $2.5 million will be released to pay Class Members based on the number of workweeks spent working and/or training as a sales agent. In this deal, the training weeks will be valued at 2x, while sales agent workweeks will be valued at 1x.

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

Lastly, the authorities clarified that class members are entitled to receive from both the All Trainees and Agents Fund and the Terminated Trainees and Agents fund, assuming they are eligible for both.

Editor’s note on the California American Income Life Insurance Class Action Settlement:

This article accentuates the current development of the California American Income Life Insurance Sales Agent Class Action Settlement. If you are considered eligible to be among the class of consumers described in the article above, you may eventually be able to participate in receiving any compensation the court may award.

Contact Us

We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.

Similarly, please check out our current list of Class Actions and Class Action Investigations, here.

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