Feds file discrimination suit against Allstate

  • Friday, December 28, 2001 9:00pm
  • Business

The federal government is suing Allstate Insurance Co., accusing it of illegally converting thousands of agents to private contractors and forcing them to sign a waiver forfeiting their right to sue the company for age discrimination and other job issues. The U.S. Equal Employment Opportunity Commission filed the lawsuit in federal court in Philadelphia on Thursday after a year of failed negotiations with the nation’s second-largest insurer. In August, a group of former Allstate agents nationwide filed a federal lawsuit alleging that Allstate fired them in an attempt to save hundreds of millions of dollars annually in benefits and to get rid of agents over age 40.

President Bush said Friday he has had no contact in recent weeks with officials from bankrupt Enron Corp., despite Chief Executive Officer Ken Lay’s longtime political support for Bush and his father. Fielding questions about the Enron debacle for the first time and speaking to reporters at his ranch in Crawford, Bush said he feels deep concern for “the citizens of Houston who worked for Enron, who lost life savings.” He added: “There’ll be plenty of investigations.”

Retailers are bracing for final December sales tallies, which promise to be a disappointment at some chains. Discounters, such as Wal-Mart and Target, continue to benefit from improvement in their apparel and home merchandise offerings. Kmart, specialty big-box superstores and traditional department stores will continue to feel pressure, according to Fitch Ratings analysts. But the luxury department store sector continues to be vulnerable, according to analysts. In days leading up to Christmas, Saks Fifth Avenue and Nordstrom deeply discounted apparel items.

Top executives at Lucent Technologies Inc. are not getting annual bonuses this year, but three will get big payments in 2002 aimed at keeping them at the struggling telecommunications giant’s helm, documents show. Documents filed Friday with the federal Securities and Exchange Commission show that three of Lucent’s top executives will get “cash retention payments” ranging from $1 million to $4.5 million. The company’s top executive, chairman and chief executive officer Henry Schacht, recommended the arrangement to Lucent’s board to retain those key managers, said Lucent spokeswoman Michelle Davidson. No such payment will go to Schacht.

The world’s largest Internet service provider, America Online Inc., said Friday it added another million subscribers, reaching 33 million customers. The announcement came just a month after AOL hit the 32 million mark on Nov. 26.

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