Lawsuits Filed Against Keller Williams Over Profit-Sharing Program
Three individuals previously associated with Keller Williams Realty, specifically Jerri L. Moulder, David L. Bueker, and Robert E. Hill, have taken legal action against the real estate brokerage by initiating three separate class-action lawsuits. These lawsuits challenge modifications made to Keller Williams’ profit-sharing program, with one of them seeking to cease further payouts until the case concludes.
Legal Action Details:
Jerri L. Moulder, who was affiliated with Keller Williams from 2002 to 2011, filed a complaint on March 22 aiming for class-action status in the U.S. District Court for the Western District of Texas in San Antonio. The complaint alleges breach of contract and unjust enrichment, with damages sought at $250 million. Moulder’s legal challenge contests adjustments made to Keller Williams’ profit-sharing program and calls for a reversal of the new policy.
Following suit, David L. Bueker, a former KW agent from 2003 to 2011, filed a similar complaint on the next day in the U.S. District Court for the Eastern District of Missouri in St. Louis. Bueker’s filing mirrors Moulder’s, while also requesting a preliminary injunction to stop the redistribution of disputed payments under the profit-sharing program.
Continuing this trend, on March 25, Robert E. Hill, a former KW agent from 2002 to 2013, filed a parallel complaint in the U.S. District Court of Kansas in Kansas City. Hill, like Moulder and Bueker, demands a preliminary injunction to prevent the redistribution of disputed payments.
Timeline of Changes:
In February 2020, Keller Williams introduced a more stringent policy to its profit-sharing program, impacting associates who joined the brokerage on or after April 1, 2020. However, agents who joined before this date were unaffected by the changes. The policy adjustments also extended the wait period to become a vested member.
During KW’s Mega Agent Camp event in Austin in August 2023, the company’s International Associate Leadership Council (IALC) voted to revise the profit-sharing distribution policy. As per the updated policy, vested agents who joined before April 1, 2020, and competed with KW brokerages would see their profit share reduced from 100% to 5%.
Revised Policy Features:
Despite the reduction in profit share, an incentive was provided for former agents to return to Keller Williams. Those who come back within six months of the effective reduction date would have their profit share reinstated to 100%. Furthermore, former KW agents who have retired or exited the industry would retain their full profit-share distribution. The new policy is anticipated to be implemented on or before July 1.
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