Published
March 6, 2026
Updated
July 29, 2026
This settlement resolves claims that Farmers Insurance misclassified its agents as independent contractors, denied them overtime, and pushed out older agents through a program called Managing Underperforming Agents. It covers agents who worked outside California, and the window to opt in, exclude yourself or object closed on April 9, 2026.
Current Status
The window to act has closed. April 9, 2026 was the deadline for every action available to class members — submitting an FLSA opt-in form, requesting exclusion from the FEHA class, and filing objections. The final approval hearing was scheduled for June 4, 2026 at 10:00 a.m. in the U.S. District Court for the Central District of California. As of July 29, 2026, no final approval order and no payment date had been located in public sources; a scheduled hearing is not an approval order. FEHA class members who did not opt out remain in the settlement and do not need to do anything.StatusClaims Closed — Final Approval Not ConfirmedHearing set for June 4, 2026; no order located as of July 29, 2026.
DeadlineApril 9, 2026FLSA opt-in, FEHA exclusion and objections all closed.
Settlement Fund$10,000,000$5.5M allocated to the FEHA class · $4.5M to the FLSA collective
Proof RequiredNoEligibility and amounts were determined from Farmers' own records.
What Was the Case About?
Farmers Insurance Exchange, Farmers Group, Inc., Truck Insurance Exchange and Fire Insurance Exchange agreed to pay up to $10,000,000 to resolve a class action alleging that the companies misclassified insurance agents as independent contractors, failed to pay overtime, and discriminated against older agents terminated through a program called Managing Underperforming Agents. The settlement covers Farmers agents who worked outside California between March 9, 2020 and September 30, 2025.Farmers denies the allegations. The company maintains that agents were properly classified as independent contractors and that terminations under the Managing Underperforming Agents process were based on legitimate business performance rather than age.
Who Were the Two Settlement Classes?
The settlement had an unusual two-class structure, with different rules for each. A person could belong to one or both.FLSA Collective — overtime claims, $4.5 million allocated. This covered anyone who signed a Farmers Agent Appointment Agreement or Corporate Agent Appointment Agreement that did not contain an arbitration agreement, and who worked as a Farmers agent or Supervising Agent for an incorporated Farmers agency outside California at any time between March 9, 2020 and September 30, 2025. This was an opt-in group: a member had to submit an FLSA opt-in form by April 9, 2026 to share in this portion. Members who did nothing received nothing from it and released no claims.
FEHA Class — age discrimination claims, $5.5 million allocated. This covered anyone who signed a Farmers appointment agreement, worked as a Farmers agent or Supervising Agent outside California during the same period, had their appointment terminated through the Managing Underperforming Agents process, and was 40 years of age or older at the time of termination. This was an automatic group: members were included unless they opted out, and those who did nothing remain in the settlement.
What Is the Managing Underperforming Agents Program?
Managing Underperforming Agents was a process Farmers used to evaluate and terminate agents whose agencies were deemed to have poor business results. The lawsuit alleged that Farmers used the program as a pretext to target and terminate older agents, many of whom had spent decades building their books of business, and that the criteria applied were vague and shifting in a way that disproportionately affected agents over 40.According to the complaint, agents terminated through the program were typically required to hand over their book of business — the clients and policies built up over years — and were barred from contacting former clients for a period after termination. Plaintiffs alleged this amounted to systemic age discrimination under California's Fair Employment and Housing Act and other federal and state anti-discrimination laws. Farmers denies those allegations.
What Were the Overtime Claims About?
The lawsuit also alleged that Farmers misclassified agents as independent contractors when they should have been treated as non-exempt employees entitled to overtime under the Fair Labor Standards Act. Plaintiffs claimed they regularly worked more than 40 hours per week without overtime pay because Farmers treated them as contractors.This was not the first misclassification case against the company. A separate class action involving Farmers agents in California, Parry v. Farmers, resulted in a $75 million settlement in 2022 over similar claims. The present case covers agents outside California who were not part of that earlier California-only settlement.
How Much Will Class Members Get?
The $10,000,000 total is split $5,500,000 to the FEHA class and $4,500,000 to the FLSA collective. Deducted from the gross settlement are attorneys' fees of up to 33.33%, service payments to the class representatives of up to $10,000 each, and settlement administration costs of up to $114,000. Under the settlement terms, those deductions come out of the gross fund rather than out of individual payments.FLSA collective payments are calculated pro rata based on the number of workweeks a member worked during the class period. FEHA class payments were stated in the individual notice each class member received. No single per-person figure applies.
Was Proof Required?
No. Eligibility and payment amounts were determined from Farmers' own employment and agency records. Class members did not have to submit receipts or supporting documentation, though FLSA members did have to return the opt-in form itself by the deadline.What Happens Next?
The remaining steps are the court's ruling on final approval, resolution of any appeal, and distribution to FEHA class members and to FLSA members who opted in. No final approval order and no payment date had been announced as of July 29, 2026. Updates are posted on the official settlement website.Official information is available at Ruffulo v. Farmers Settlement.
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 a.m.
Related Age Discrimination Cases
• Enterprise Leasing of Florida $1.8 Million EEOC Age Discrimination Settlement — applicants 40 and older denied a Management Trainee role in Florida between January 1, 2019 and December 31, 2023.• Tinder $60.5 Million Age Discrimination Settlement — California users 29 and older charged more for Tinder Plus.
Sources
• Official settlement website: Ruffulo v. Farmers Settlement• Settlement notice and FAQ posted by the settlement administrator
• Ruffulo v. Farmers Insurance Exchange, et al., No. 2:23-cv-01796-FMO-MAAx, U.S. District Court for the Central District of California
Official Settlement Notice
For more class actions keep scrolling below.
Settlement Fund
$10,000,000 ($5.5M FEHA + $4.5M FLSA)
Case Title
Ruffulo v. Farmers Insurance Exchange, et al.
Case Number
2:23-cv-01796-FMO-MAAx
Court
U.S. District Court, Central District of California
Deadline
April 9, 2026 (all actions)
Final Approval Hearing
June 4, 2026 at 10:00 a.m.
No ruling located as of July 29, 2026.
Status
Claims Closed — Final Approval Not Confirmed
Administrator
Epiq
Official Website
Ruffulo v. Farmers Settlement
