Although admitting no wrongdoing, Allstate has established a$120 million reserve for the settlement of a class action lawsuitbrought by adjusters employed by the company between November 1996and December 2004. The California adjusters complained thatAllstate denied them overtime pay, while assigning them such heavycase loads that they were forced to work in excess of 40 hours aweek.


Nearly 3,000 adjusters are eligible to receive payments thatcould range from $1,000 to $100,000 each, depending on length ofemployment and estimated overtime worked, according to theplaintiff's attorney, R. Rex Parris, of Lancaster, Calif.


In January, State Farm settled a similar suit in California,agreeing to reimburse 2,600 claim adjusters $135 million. Theprevious September, Farmers Insurance Exchange also signed anovertime settlement agreement, for $210 million.

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