Before November 1999, the majority of captive agents under contract with Allstate were employees who were entitled to a wide range of company-sponsored health, welfare, and retirement benefits. On November 10, 1999, Allstate announced “Preparing for the Future,” a new business model to reorganize its captive agency force into a single exclusive agency independent contractor program. With few exceptions, Allstate terminated the employment contracts of the more than 6,200 employee agents effective no later than June 30, 2000. Allstate offered the agents four options. Allstate conditioned the first three options upon the agents signing a release (the "Release"). Several employee agents brought age discrimination charges against Allstate with the Equal Employment Opportunity Commission ("EEOC"). On August 1, 2001, thirty-two (32) employee agents (the "Romero I Plaintiffs") began this Action by suing Allstate.
Spanning nearly 17 years and a number of judges, 499 individual agents eventually sued claiming Allstate's decision violates uniform federal law applying to all agents and in part violates the differing common law of the forty states where they reside. In 2016, the agents filed a consolidated complaint: Download the Romero Consolidated Amended Complaint filed 5/20/2016.
July 7, 2016 case update as Reported by Bloomberg: Judge Streamlines Allstate Agents' ERISA Claims Before Trial
Read the Text of 7/6/2016 Court Opinion here.
For nearly 15 years, case updates were chronologized on the website AllstateCase.com which was maintained by the original plaintiffs’ attorneys. The website is no longer active, but many excerpts were preserved and recorded by NAPAA. NAPAA members can login to read the case updates here.