AFLAC Incorporated (NYSE:AFL) shares have been hit hard over reports of workplace fraud.
The insurance giant has reportedly been exploiting its workers by pushing a high-pressure contract scheme on them, according to a Thursday report on The Intercept. Allegations have been made by current and former employees, along with three previously unreported lawsuits.
Aflac spokesman Jon Sullivan responded to these claims by saying, “these allegations are baseless and we will be filing to have them dismissed.” The article making these claims is only the first in a series that will paint the picture of what employees had to say and what the lawsuits allege.
One of these claims is that Aflac misleads its new employees, exploiting them by classifying them as independent contractors, while also pressuring associates with sales goals that push workers to sell policies to customers without the latter’s consents.
The article adds that the company is taking part in such practices in order to bring in income under any means necessary. These practices are apparently part of the way Aflac recruits its workers.
The insurer may be offering sales associates and contract positions with the promise that these workers will earn an unrealistic amount of money, with new hires only making a small percentage of these earnings.
Aflac then reportedly pushes sales associates to sell these policies to friends and relatives, while also making them targets to be recruited.
AFL stock fell more than 7.6% on Friday.