EEOC v. Allstate

Case Updates

The Third Circuit affirmed the district court’s denial of EEOC’s “facial retaliation” claim.

In the coalition brief, the U.S. Chamber asked the Third Circuit to affirm the holding of the district court that Allstate’s use of a written waiver and release in a severance program affecting thousands of former employee-agents did not amount to a facial violation of federal anti-retaliation laws. The brief argues that by allowing the EEOC to challenge the validity of workplace waivers and releases under a facial retaliation theory significantly impedes upon the private resolution of workplace disputes, and creates hardships for employers and employees alike. Companies are unlikely to offer enhanced severance benefits if they are precluded from conditioning receipt of those benefits on the execution of a valid release. The brief points out that by requiring releases in exchange for enhanced severance benefits, employers are seeking to ensure that they will not be subject to future lawsuits by terminated employees, thus enabling all involved to move on with their business and personal lives without the threat of disruptive and lengthy litigation.

The Chamber filed the brief jointly with the Equal Employment Advisory Council.

Rae T. Vann of Norris Tysse Lampley & Lakis, LLP represented the U.S. Chamber of Commerce as co-counsel to the U.S. Chamber Litigation Center.