Allstate Insurance Co. has agreed to pay $4.5 million to about 90 former employees to settle an age discrimination class action lawsuit. The litigation with the U.S. Equal Employment Opportunity Commission was filed in 2004 and stems from the Northbrook, Ill.-based insurer’s efforts in 2000 to convert its 15,000-member agent workforce to independent contractors from regular employees.
According to the EEOC Allstate had adopted a hiring moratorium for a period of one year, or while severance benefits were being received, that had a disproportionate impact on workers over age 40 because more than 90% of the agents subjected to it were in that age group. Allstate denied that its hiring moratorium violated the Age Discrimination in Employment Act of 1967.
Source: Business Insurance
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