Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    What Real Estate Agents Need To Know About Cognitive Impairment

    December 10, 2024

    Will 2025 finally be a ‘normal’ housing market?

    December 10, 2024

    The Customer Is Always Right, But What If They’ve Been Misinformed?

    December 10, 2024
    Facebook X (Twitter) Instagram
    Trending
    • What Real Estate Agents Need To Know About Cognitive Impairment
    • Will 2025 finally be a ‘normal’ housing market?
    • The Customer Is Always Right, But What If They’ve Been Misinformed?
    • eXp, Weichert say Gibson plaintiffs’ motion is all about attorneys’ fees
    • Americans More Optimistic Home Prices and Mortgage Rates Have Peaked
    • EasyKnock abruptly shuts down its sale-leaseback platform
    • Under-The-Radar NAR Nonprofit May Have Hidden GOP Agenda
    • NAR’s nonprofit funds conservative groups
    Facebook X (Twitter) Instagram
    Industry Movement
    • Home
    • Entertainment
    • Business
    • News
    • Real Estate
    Industry Movement
    Home»Real Estate»Keller Williams To Settle Lawsuits Over Scrapped Profit Share Plan
    Real Estate

    Keller Williams To Settle Lawsuits Over Scrapped Profit Share Plan

    adminBy adminSeptember 19, 2024No Comments0 Views
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email



    Former Keller Williams agents had filed suit in recent months over the company’s now-abandoned plans to slash profit sharing for agents who jumped ship for rival brokerages before April 2020.

    Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.

    Keller Williams has reached an agreement to settle a string of lawsuits filed by former agents who challenged the company’s past plans to cut its profit sharing program, according to a court entry filed on Friday.

    Numerous former agents have filed proposed class-action lawsuits in recent months over the company’s scrapped plans to slash its profit sharing for agents who jumped ship and worked for a competitor.

    Several of those lawsuits were nearly identical, and some sought to block the company from making profit share distributions until the courts weighed in on the matter.

    TAKE THE INMAN INTEL INDEX SURVEY FOR SEPTEMBER

    On Friday, attorneys for one of the plaintiffs informed the United States District Court of Maine they had reached an agreement to settle the case with Keller Williams, and that the settlement would be completed within the next 30 days.

    The filing was made in a case filed in May by James McFarlane, a Keller Williams agent who was an associate broker with the franchisor from 2004 to 2018.

    McFarlane, like other former brokers and agents suing the company, moved to block Keller Williams from making changes to its profit sharing program retroactive. The company had temporarily sought to apply the changes to agents who left before 2020.

    “The Profit Sharing Program was developed to be a way to reward those associates who helped build the company,” McFarlane wrote in his complaint. “The Profit Sharing Program was designed to be an open-ended profit sharing program that allowed Keller Williams associates, investors, Team Leaders, Market Center staff, Keller Williams staff, and Regional Directors to participate in profits they helped to create without assuming any financial risk.”

    Keller Williams spokesman Darryl Frost confirmed the agreement to settle most — but not all — of the lawsuits.

    “The McFarlane case, as with the other cases brought by the same law firm, challenged certain profit-share program revisions that were never implemented,” Frost said. “The matters have been amicably resolved and settled.”

    Keller Williams agreed to settle lawsuits that were filed within weeks of each other by plaintiffs who were represented by the Missouri law firm Humphrey, Farrington & McClain. Those cases include: 

    • Jerri Moulder
    • Michael Devlin
    • Eric Mendoza
    • Jana and Dennis Caudill
    • Penny Alper
    • Paul Davis
    • Edward Fordyce
    • Kevin Ortiz
    • Robert Hill

    Attorneys for the plaintiffs and Keller Williams must complete the settlement within 30 days.

    Keller Williams began making changes to its profit sharing recruitment tool in 2020, when it announced that associates who joined Keller Williams on or after April 1, 2020 and then jumped to a competitor would no longer receive profit shares from the company’s lifelong revenue program.

    In August 2023, the company moved to make that policy retroactive. The company’s leadership council voted to lower the profit share for agents who joined Keller Williams before April 1, 2020 and jump to a competitor from 100 percent to 5 percent.

    The planned change appeared to be an attempt to get the defectors to return to Keller Williams, as it would have given agents affected by the policy six months to return.

    In March, impacted agents began filing their class-action lawsuits, and within weeks Keller Williams abandoned its plans to make the changes retroactive. 

    Instead of the changes, Keller Williams moved in May to maintain its current policy, which allows agents who joined the company before April 1, 2020, to collect 100 percent of their profit share amount even if they leave the firm to work for a competing brokerage.

    Vested agents are those who join KW and remain affiliated for seven consecutive years. Such agents who don’t actively compete with KW will not be affected. The company defines “actively compete” as when an agent disassociates from a Keller Williams brokerage and joins a non-KW brokerage or induces an associate to affiliate with a non-KW brokerage.

    Frost confirmed on Wednesday that this remains the company’s latest version of its profit sharing program.

    Email Taylor Anderson





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    admin

    Related Posts

    What Real Estate Agents Need To Know About Cognitive Impairment

    December 10, 2024

    Will 2025 finally be a ‘normal’ housing market?

    December 10, 2024

    The Customer Is Always Right, But What If They’ve Been Misinformed?

    December 10, 2024
    Leave A Reply Cancel Reply

    Recent Posts
    • What Real Estate Agents Need To Know About Cognitive Impairment
    • Will 2025 finally be a ‘normal’ housing market?
    • The Customer Is Always Right, But What If They’ve Been Misinformed?
    • eXp, Weichert say Gibson plaintiffs’ motion is all about attorneys’ fees
    • Americans More Optimistic Home Prices and Mortgage Rates Have Peaked
    Recent Comments
      Archives
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      Categories
      • Business
      • Entertainment
      • News
      • Real Estate
      Meta
      • Log in
      • Entries feed
      • Comments feed
      • WordPress.org
      Demo
      Top Posts

      How To Avoid These 12 Costly Business Traps

      November 30, 202430

      Gen Zer Won NYC Housing Lottery, Pays $1.6K Rent for Queens Apartment

      October 1, 202427

      SEC Chair Gary Gensler will step down Jan. 20, making way for Trump replacement

      November 21, 202424

      Better Pay, More Time Off: What Real Estate Agents Want This Labor Day

      August 31, 202424
      Don't Miss
      Real Estate

      What Real Estate Agents Need To Know About Cognitive Impairment

      By adminDecember 10, 20245

      Senior real estate specialist Nikki Buckelew writes that understanding cognitive impairment among seniors is about…

      Will 2025 finally be a ‘normal’ housing market?

      December 10, 2024

      The Customer Is Always Right, But What If They’ve Been Misinformed?

      December 10, 2024

      eXp, Weichert say Gibson plaintiffs’ motion is all about attorneys’ fees

      December 10, 2024
      Stay In Touch
      • Facebook
      • Twitter
      • Pinterest
      • Instagram
      • YouTube
      • Vimeo

      Subscribe to Updates

      Get the latest creative news from SmartMag about art & design.

      Demo
      Our Picks

      What Real Estate Agents Need To Know About Cognitive Impairment

      December 10, 2024

      Will 2025 finally be a ‘normal’ housing market?

      December 10, 2024

      The Customer Is Always Right, But What If They’ve Been Misinformed?

      December 10, 2024
      Most Popular

      How To Avoid These 12 Costly Business Traps

      November 30, 202430

      Gen Zer Won NYC Housing Lottery, Pays $1.6K Rent for Queens Apartment

      October 1, 202427

      SEC Chair Gary Gensler will step down Jan. 20, making way for Trump replacement

      November 21, 202424
      Legal Pages
      • About Us
      • Disclaimer
      • DMCA Notice
      • Privacy Policy

      Type above and press Enter to search. Press Esc to cancel.