Business Services Industry

Allstate slapped with EEOC suit.(U.S. Equal Employment Opportunity Commission lawsuit)(Brief Article)

Crain's Chicago Business, January, 2002

Allstate Corp. of Northbrook should pay as much as $2 billion to 6,500 current and former agents who were forced to give up benefits, a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) contends. The EEOC sued Allstate after it refused to ``provide appropriate monetary relief'' to the agents, who were forced to become independent contractors rather than regular employees with benefits.

The EEOC alleges that Allstate's plan to make agents sign releases barring them from suing the insurer in connection with the change violated the Age Discrimination in Employment Act, as well as provisions of the Americans with Disabilities Act. Of the agents affected by the action, 19 didn't sign the waivers and left the company, while the rest did and...

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