Illinois Sexual Harassment Attorney Blog

Allstate Insurance company settled an age discrimination lawsuit the the Equal Employment Opportunity Commission ('EEOC") for $4,500,000. The lawsuit was filed by the EEOC on behalf of 90 claimants. The EEOC alleged that Allstate violated the Age Discrimination in Employment Act ("ADEA"). Allstate which is based in Illinois is said to have treated a class of older workers negatively during a companywide reorganization. In particular Allstate adopted a plan called Preparing For The Future Reorganization Program. The program was part of Allstate’s reorganization from employee agents to what the company considered independent contractors. That program had a disproportionate impact on employees over the age of 40 because more than 90 percent of the agents subjected to the hiring moratorium were 40 years of age or older.

Of course Allstate denied that its hiring moratorium violated the ADEA, however the $4.5 million dollar settlement says different. Companies cannot institute policies that disproportionately affect older workers. There are many reasons why companies would like to get rid of older workers, namely they can pay younger workers less money, and younger workers are less likely to have large medical bills. Also, younger workers are less likely to challenge the policies of a company.

“We at the EEOC are now bringing more and more lawsuits like this one to challenge company-wide policies or practices which discriminate against a large number of workers,” said EEOC Acting Chairman Stuart J. Ishimaru. “Make no mistake: As this settlement shows, we will insist on significant compensation and meaningful injunctive relief to resolve these cases.”