Allstate Settles Class Action Discrimination Lawsuit for $4.5 Million

EEOC v. Allstate Insurance

(Eastern District of Missouri, September 14, 2009)


On September 14, 2009, Allstate settled an age discrimination action agreeing to pay 90 former employees approximately $4.5 Million. The litigation arose out of Allstate’s efforts to convert its workforce from employees to independent contractors.


In order to facilitate the transition, Allstate enacted a hiring moratorium for one year, beginning in 2000. It was alleged that the moratorium had a disparate impact on individuals over 40 years old. In addition to the payment, the stipulated order provides for discrimination prevention training, posting of notices and other relief designed to educate Allstate managers in order to prevent future violations. 


For a copy of the settlement agreement, click here


By Brian R. Biggie and Joseph A. Oliva