Farmers Insurance $10 Million Age Discrimination and Unpaid Overtime Class Action Settlement
By Steve Levine
Published: March 6, 2026
Deadline: April 9, 2026 (FLSA opt-in, FEHA exclusion, and objections)
Payout: Pro rata based on workweeks (two separate funds)
What is the Farmers Insurance Settlement?
Farmers Insurance Exchange, Farmers Group, Inc., Truck Insurance Exchange, and Fire Insurance Exchange have agreed to pay up to $10,000,000 to settle a class action lawsuit alleging the companies misclassified insurance agents as independent contractors, failed to pay overtime, and engaged in age discrimination against older agents who were terminated through a program called "Managing Underperforming Agents." The settlement covers Farmers agents who worked outside of California between March 9, 2020 and September 30, 2025.There are two settlement classes. You may belong to one or both depending on your circumstances. The FLSA Collective covers overtime claims ($4.5 million allocated), and the FEHA Class covers age discrimination claims ($5.5 million allocated). How you participate depends on which class you fall into.
The deadline for all actions — FLSA opt-in, FEHA exclusion requests, and objections — is April 9, 2026.
Who Are the Two Settlement Classes?
This settlement has a unique two-class structure with different rules for each:FLSA Collective (Overtime Claims — $4.5 Million): You are in this group if you signed a Farmers Agent Appointment Agreement or Corporate Agent Appointment Agreement that did not contain an agreement to arbitrate and worked as a Farmers agent or Supervising Agent for an incorporated Farmers agency outside of California at any time between March 9, 2020 and September 30, 2025. This is an opt-in class, meaning you must actively submit an FLSA Opt-In Form by April 9, 2026 to receive a payment. If you do nothing, you will not be included and will not receive any money from this portion.
FEHA Class (Age Discrimination Claims — $5.5 Million): You are in this group if you signed a Farmers appointment agreement, worked as a Farmers agent or Supervising Agent outside of California during the same period, had your appointment terminated by Farmers through the Managing Underperforming Agents process, and were 40 years of age or older at the time of your termination. This is an automatic class, meaning you are included unless you choose to opt out. If you do nothing, you will receive a payment automatically.
What is the Managing Underperforming Agents Program?
The Managing Underperforming Agents (MUA) program was a process Farmers used to evaluate and terminate agents whose agencies were deemed to have poor business results. The lawsuit alleges that Farmers used the MUA program as a pretext to target and terminate older agents, many of whom had spent decades building their businesses. The plaintiffs claim the terminations were based on age, not on legitimate performance issues, and that the vague and shifting criteria used by the program disproportionately affected agents over 40.Agents terminated through the MUA program were typically required to hand over their book of business — the clients and policies they had built up over years or decades — and were prohibited from contacting their former clients for a period after termination. The lawsuit alleges this pattern amounted to systemic age discrimination in violation of FEHA and other federal and state anti-discrimination laws.
Farmers denies these allegations and maintains that agents were properly classified as independent contractors and that MUA terminations were based on legitimate business performance, not age.
What Were the Overtime Claims About?
The lawsuit also alleged that Farmers misclassified its agents as independent contractors when they should have been classified as non-exempt hourly employees entitled to overtime pay under the Fair Labor Standards Act. The plaintiffs claim they regularly worked more than 40 hours per week but were never paid overtime because Farmers treated them as independent contractors rather than employees.The misclassification issue is not new for Farmers. In 2022, a separate class action involving Farmers agents in California (Parry v. Farmers) resulted in a $75 million settlement over similar misclassification claims. The current Ruffulo case covers agents outside of California who were not part of the earlier California-only settlement.
How Much Money Will I Get?
Farmers agreed to pay up to $10,000,000 total. The fund is split between the two classes:FEHA Class (age discrimination): $5,500,000 allocated
FLSA Collective (overtime): $4,500,000 allocated
After deducting attorney fees (up to 33.33% of the gross settlement), service payments to the named plaintiffs (up to $10,000 each), and settlement administration costs (up to $114,000), the remaining funds will be distributed to class members. Attorney fees, costs, and service payments will not be deducted from your individual settlement payment.
FLSA Collective payments are calculated on a pro rata basis based on the number of workweeks you worked during the class period. FEHA Class payments are listed in the individual notice each class member received.
How Do I Participate?
It depends on which class you belong to:FLSA Collective Members (overtime): You must submit an FLSA Opt-In Form postmarked by April 9, 2026. You can submit the form by mail to the settlement administrator (P.O. Box 5526, Portland, OR 97228-5526), by fax, or by email to OptIn@Ruffulo-v-Farmers.com. If you do not opt in, you will not receive any payment from the FLSA portion and will not release any claims.
FEHA Class Members (age discrimination): No action is required. You are automatically included and will receive a payment if the settlement is approved. If you want to exclude yourself, you must submit a written exclusion request postmarked by April 9, 2026. If you do nothing, you will receive your payment.
Is Proof Required?
No. Eligibility and payment amounts are determined using Farmers' own records. You do not need to provide receipts or documentation.What are the Important Dates?
Class Period: March 9, 2020 to September 30, 2025
FLSA Opt-In Deadline: April 9, 2026
FEHA Exclusion Deadline: April 9, 2026
Objection Deadline: April 9, 2026
Final Approval Hearing: June 4, 2026 at 10:00 AM, U.S. District Court, Central District of California, Courtroom 6D, 350 W. 1st Street, Los Angeles, CA 90012
When Will Payments Be Sent?
Payments will be issued after the Court approves the settlement at the final approval hearing on June 4, 2026 and after any appeals are resolved. Payments to FEHA Class Members will be reported on IRS 1099 forms. Payments to FLSA Collective Members will also be reported on 1099 forms.What Happens If I Do Nothing?
The consequences depend on which class you belong to:FLSA Collective Members: If you do nothing, you will not receive any payment from the overtime portion of the settlement. You will not release any claims and may still have the right to file your own overtime claim if the deadline has not expired.
FEHA Class Members: If you do nothing, you will automatically be included in the settlement and will receive a payment. You will release the age discrimination claims described in the settlement agreement.
Case Information
Caption: Ruffulo v. Farmers Insurance Exchange, et al., Case No. 2:23-cv-01796-FMO-MAAx
Court: U.S. District Court, Central District of California
Judge: Honorable Fernando M. Olguin
Plaintiffs: James Ruffulo and Valerie Yankus
Defendants: Farmers Insurance Exchange, Farmers Group, Inc., Truck Insurance Exchange, Fire Insurance Exchange
Class Counsel: Seth R. Lesser and Sarah E. Sears, Klafter Lesser LLP (Rye Brook, NY); Carney R. Shegerian and William Reed, Shegerian & Associates, Inc. (Los Angeles, CA)
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:Official Settlement Notice (PDF)
Settlement Website: Ruffulo-v-Farmers.com
Submit Opt-In Form / View Details
Sources
• Official Settlement SiteFiling Class Action Settlement Claims
Please note that your claim form will be rejected if you submit a settlement claim with any fraudulent information. By providing this information and your sworn statement of its veracity, you agree to do so under the penalty of perjury. If you are not sure whether you qualify, visit the class action administrator's website. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm.
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Pre-Qualify| Farmers Insurance Settlement Summary | |
| Status | Open — FLSA Opt-In / FEHA Automatic |
|---|---|
| Deadline | April 9, 2026 (all actions) |
| Final Approval Hearing | June 4, 2026 at 10:00 AM (Los Angeles) |
| Settlement Amount | $10,000,000 ($5.5M FEHA + $4.5M FLSA) |
| Estimated Payment | Pro rata based on workweeks (listed in your notice) |
| Proof Required | No (verified by Farmers records) |
| Who Qualifies | Farmers agents outside California (Mar 2020 - Sep 2025); FEHA class also requires MUA termination + age 40+ |
| Website | Ruffulo v. Farmers Settlement |
| Claims Administrator | Epiq |