A federal judge has ruled that Allstate discriminated against agents over the age of 40 and granted a trial to determine if its actions fall under an exemption to federal law.
The U.S. Equal Employment Opportunity Commission said that Judge E. Richard Webber, sitting in the U.S. District Court in St. Louis, granted the EEOC's motion for summary judgment against Allstate. A request for comment on the decision from Allstate was not returned.
Judge Webber ruled that Allstate violated the Age Discrimination in Employment Act (ADEA) when in 2000 it terminated its sales agents, offered to make them independent contractors, and refused to rehire them in other positions as employees for one year. Because 90 percent of the agents were 40 years or older, the EEOC contended that the rehire policy violated the ADEA.
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