Former Northwestern Mutual Financial Representative Files Class Action Lawsuit Based on Improper Expense Reimbursement Policy

Share Article

A former Northwestern Mutual Life Financial Representative has filed a class action lawsuit against the company challenging the company's practice of charging its employees for necessary business expenses.

"By bringing this lawsuit, our client seeks justice for himself and other Northwestern Mutual employees..." said Attorney V. James DeSimone

On June 17, 2010, Kevin Fossum, a former Financial Representative of Northwestern Mutual Life Insurance Company, filed a class action lawsuit against the company alleging violations of California’s Labor Code based on the company’s unlawful practice of requiring its financial representatives to reimburse the company for necessary business expenses. The lawsuit was filed in the United States District Court for the Northern District of California: Kevin Fossum v. Northwestern Mutual Life Insurance Company, No. CV 10-2657-LB.

The lawsuit alleges: “Although Northwestern Mutual Life (“NML”) exercised almost total control over the means and manner in which its Financial Representatives such as Kevin Fossum performed their duties, NML chose to classify its Financial Representative as “independent contractors.” Under the guise of their being independent contractors, NML would regularly charge its Financial Representatives for necessary business expenses, including... fees for cubical rent, telephone, computer, faxes, parking, marketing materials, and clerical assistance and would deduct such “expenses” from their earnings.” The lawsuit further alleges that “NML’s practice is a clear violation of California law, which prohibits employers from requiring their employees to pay for necessary business expenses. As a direct result of its unlawful practices, NML has illegally reaped millions of dollars from its employees....”

“By bringing this lawsuit, our client seeks justice for himself and other Northwestern Mutual employees and to make sure that the company complies with California law which prohibits employers from charging their employees for necessary business expenses. Unlawfully deducting expenses from employee earnings is a form of wage theft.” stated attorney V. James DeSimone.

Mr. Fossum is being represented by attorneys V. James De Simone and Michael D. Seplow of Schonbrun DeSimone Seplow Harris & Hoffman and Christopher Moody of Moody & Warner.

For additional information contact:        

V. James DeSimone
Michael D. Seplow
(310) 396-0731
vjdesimone(at)gmail(dot)com
mseplow(at)gmail(dot)com

http://www.losangelesemploymentlawyer.com

Christopher Moody
(310)988-2646
moody(at)nmlaborlaw(dot)com

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author