EEOC v. Morgan Stanley
Resolved Case
Perez, et al. v. Allstate
With approximately 55,ooo employees, Allstate is the third largest U.S. personal property and casualty insurer.
According to the pleadings, Allstate’s home office set standards for how quickly adjusters were supposed to process claims. These metrics created a relentless workflow that effectively required adjusters to work late into the evening and on weekends to keep up, they said.
Despite the long hours, adjusters received no overtime pay, their complaint alleged.
The settlement put money into adjusters’ pockets to account for the unpaid overtime they alleged. Allstate admitted no wrongdoing in the settlement, which the parties inked on the eve of a trial to avoid the uncertainty it would bring and put the case behind them.
Framing the Issue
- Misclassifying employees as exempt from overtime requirements causes huge shortfalls in their paychecks. A 2023 study from the National Bureau of Economic Research found that one common basis for misclassifying employees as exempt – dubiously labeling them managers, even though they don’t really manage a company – cost individuals an average of $3,000 per year.
- Wage theft can affect employees in any industry. Enforcement data from the U.S. Department of Labor show major problems in food services, health care, and construction, where the number of workers affected, the number of violations that occur, and the amount of unpaid wages recovered far exceed other sectors.
- It can be helpful to keep track of the hours you work and pay you receive, as well as breaks you take or expenses you incur for your employer. Having these records handy can help you spot any pay mix-ups and back you up if you ever need to sort out missing wages or overtime.