Although admitting no wrongdoing, Allstate has established a $120 million reserve for the settlement of a class action lawsuit brought by adjusters employed by the company between November 1996 and December 2004. The California adjusters complained that Allstate denied them overtime pay, while assigning them such heavy case loads that they were forced to work in excess of 40 hours a week.
Nearly 3,000 adjusters are eligible to receive payments that could range from $1,000 to $100,000 each, depending on length of employment and estimated overtime worked, according to the plaintiff’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. The previous September, Farmers Insurance Exchange also signed an overtime settlement agreement, for $210 million.