Ferguson vs. Texas Farm Bureau Et Al

Case Background

On April 20, 2017, Plaintiff Christopher Ferguson filed an FLSA Overtime Lawsuit in the Texas State, District Court of Waco Division (Case number: 6:17cv111). Judge Derek T. Gilliland presided over the case.

Cause

Christopher Ferguson worked as an Agency Manager for the Texas Farm Bureau and several affiliated insurance companies from June 2009 to December 2017. The defendants, including Texas Farm Bureau Business Corporation, Texas Farm Bureau Casualty Insurance Company, Texas Farm Bureau Mutual Insurance Company, and others, classified Ferguson and 120 to 160 other Agency Managers as independent contractors. Agency Managers were paid solely on commission with no base salary or overtime pay, despite regularly working over 40 hours per week. Their overtime hours typically ranged from 5 to 20 hours weekly. District Sales Managers employed by the defendants closely supervised Agency Managers. They required Agency Managers to provide weekly and monthly reports and evaluated their performance. The defendants issued company email accounts (e.g., cferguson@txfb-ins.com) and official business cards to Agency Managers. Agency Managers were contractually required to work exclusively for Texas Farm Bureau and prohibited from subcontracting their duties without prior written approval. The defendants forced Agency Managers to enter separate "Memorandums of Understanding" with County Farm Bureaus, requiring them to obtain office space, furniture, supplies, and clerical staff from the County Boards at designated costs. The defendants deducted these expenses from Agency Managers' commission earnings. Additional deductions were made for advertising, equipment leases, and even "buyouts" to former Agency Managers that Ferguson and others replaced. Ag