Question
As part of a major corporate reorganization, Allstate Insurance Company terminated thousands of its agents and presented them with several options. If they desired to
As part of a major corporate reorganization, Allstate Insurance Company terminated thousands of its agents and presented them with several options. If they desired to stay with the company, they could do so by agreeing to become independent contractors and signing a waiver of any legal claims against Allstate. Agents who chose not to remain with the company were eligible for various levels of severance pay, again on the condition that they waive legal claims. The waivers applied only to legal claims accrued up to the date of their signing and did not preclude the filing of charges with the Equal Employment Opportunity Commission (EEOC). Allstate was sued by the EEOC on the grounds that requiring agents to give up their right to sue as a condition for remaining with the company constituted retaliation because refusal to sign releases was protected activity that resulted in the materially adverse action of being denied the ability to continue working for Allstate. What should the court decide? Why? (See EEOC v. Allstate Ins. Co., 778 F.3d 444 (3rdCir. 2015).
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